 |
The SALT Shaker PodcastAuthor: Eversheds Sutherland
State and local tax jurisdictions continue to evolve their tax systems around the US. Analyzing the latest key decisions, legislative and regulatory changes, and revenue agency guidance, the Eversheds Sutherland SALT Team focuses on providing tax professionals with a quick update of the most important developments in US state and local tax. The SALT Shaker Podcast helps tax professionals navigate growing challenges in the evolving tax systems of state and local jurisdictions. Language: en Genres: Business, Business News, Management, News Contact email: Get it Feed URL: Get it iTunes ID: Get it |
Listen Now...
A Texas two-step on franchise tax: Lessons from NuStar and American Airlines
Tuesday, 28 April, 2026
In this episode of the SALT Shaker Podcast, Partners Jeremy Gove and Chelsea Marmor break down two noteworthy Texas franchise tax decisions that provide important guidance on sourcing and federal preemption. The hosts first discuss NuStar Energy LP v. Hancock, a Texas Supreme Court decision addressing how receipts from the sale of tangible personal property are sourced for franchise tax purposes. The court held that receipts are sourced to Texas based on where the property is delivered to the buyer, rejecting an "ultimate use" or consumption-based approach, even where the property (bunker fuel) could not legally be used in Texas. They then turn to Hancock v. American Airlines, where a Texas appellate court concluded that the federal Anti‑Head Tax Act preempts application of the Texas franchise tax to certain airline revenue streams. The court determined that, despite being styled as a margin tax, the franchise tax functions as a tax on gross receipts from air transportation, bringing it within the scope of federal preemption. The episode wraps up with an overrated/underrated debate on standing desks. For questions or comments, email SALTonline@eversheds-sutherland.com. Subscribe to receive regular updates hosted on the SALT Shaker blog.
