March 27, 2007
FOR IMMEDIATE RELEASE

Texas Supreme Court Denies Petition for Review in Home Interiors.
On March 9, 2007, the Texas Supreme Court denied the Comptroller's petition for review. The Third Court of Appeals found that the earned surplus throwback provision of the Texas franchise tax unconstitutionally burdens interstate commerce as a result of unfairly apportioning the tax base. See Home Interiors & Gifts, Inc. v. Strayhorn, 175 S.W.3d 856 (Tex. App.--Austin 2005, pet. denied). For more details regarding the Opinion, see the prior releases dated August 7, 2005 and September 27, 2005.

TECHNICAL INFORMATION CONTACTS:

Eric Stein Principal Ryan & Company 512.476.0022 Eric Stein

Sandi Farquharson Senior Taxpayer Advocate Ryan & Company 512.476.0022 Sandi Farquharson

Sarah Stroud Senior Manager Ryan & Company 972.934.0022 Sarah Stroud

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