Court Opinion

ID: 9773334
Source: CourtListenerOpinion
Date Created: 2023-08-29 17:42:27.345108+00
Date Added: 2024-06-11T07:31:52.255659
License: Public Domain

REAVLEY, Justice,
concurring.
I do not regard the Texas franchise tax as an income tax within the meaning of the Buck Act. The sales within the federal enclave are taken into account only to apportion the corporation’s capital as between Texas and other jurisdictions. In that respect I agree with the dissent. For a similar reason I do not regard the franchise tax, or any part of it, as violative of Art. I § 8 of the United States Constitution. While Texas could not tax General Dynamics for the privilege of doing business within the enclave, Texas does and may properly tax General Dynamics for the privilege of doing business throughout the State. For that purpose the apportionment of the corporate capital may be made according to total statewide sales — including sales within the enclave. Werner Machine Co., Inc. v. Director of Taxation of New Jersey, 350 U.S. 492, 76 S.Ct. 534, 100 L.Ed. 634 (1956); Educational Films Corp. v. Ward, 282 U.S. 379, 51 S.Ct. 170, 75 L.Ed. 400 (1930).