Margin Tax Analysis

In 2006, Texas’ Governor signed into law an expanded business tax, the Margin Tax, labeled by many as the largest tax increase in Texas history. This bill replaced the ineffective, loophole-addled franchise tax, and is expected to draw in $14.5B in taxes over five years.

This is a bill fraught with problems; even the state Comptroller sees an ‘expectation of problematic tax rules’ in this new tax. Streamline is well-versed in this troublesome new tax, helping to mitigate risk, and creating streamlined analyses. We slice through the confusion and complexities, and can parse out confusing rules including “synergy” and “mutual benefit.”

Our analysis covers the following:

• Measuring a company’s new Texas margin tax liability
• Diagnosis of issues that will considerably impact a company
• Identifying potential methods to reduce tax liability
• Analyzing margin law filings
• Reviewing “new” apportionment calculations
• Facilitating a deeper client understanding of the new Texas margin tax