Glenn Hegar, Comptroller of the State of Texas and Ken Paxton, Attorney General of the State of Texas v. Autohaus LP, LLP

Summary

This document is the State of Texas’s response to an amici curiae brief in an appeal concerning whether Autohaus’s labor and installation costs qualify as cost-of-goods-sold deductions under Texas Tax Code section 171.1012. The State argues that the statute requires a cost-specific analysis and does not permit taxpayers to use federal deductions as a general basis for calculating the Texas deduction, and it requests reversal of the trial court’s judgment.

Questions Presented

1. Whether labor costs incurred by Autohaus to install automobile parts on customer-owned vehicles qualify as costs of goods sold under Texas Tax Code section 171.1012.
2. Whether the district court properly granted summary judgment in favor of Autohaus.
3. Whether the district court had jurisdiction to award attorneys' fees and costs.

Disposition

other