AUSTIN - On Friday, the Texas Supreme Court denied CITGO Petroleum’s petition for review in a case brought over franchise taxes the company paid.
Court records show CITGO sought to recover a portion of the Texas franchise tax it paid on its 2008 and 2009 Texas Franchise (Margin) Tax Reports. The case involves the calculation of CITGO’s franchise tax apportionment factor – specifically whether gross proceeds from the sale of securities should be included in that calculation.
CITGO argued that a section of the tax code permitted the use of gross receipts from the sale of securities in its apportionment calculation. The Texas Comptroller, however, argued that it does not and the trial court entered a judgment in the comptroller’s favor, court records show.
The judgment was affirmed on appeal last October.
In its petition for review, CITGO asked the Supreme Court to reverse the judgment and find that CITGO Trading’s securities meet the requirements of Tex. Tax Code § 171.106(f) such that the gross proceeds from the sales of those securities are includable in CITGO’s Texas franchise tax apportionment factor.
Case No. 21-0997