Bob Bullock v. National Bancshares…

Summary

The Texas Supreme Court held that interest and dividends received from national banks located in Texas are includable in a corporation’s Texas gross receipts for franchise tax purposes, and that the exemption in Article 7, section 1 does not extend to bank holding companies or corporate holders of bank certificates of deposit. The court reversed the Court of Civil Appeals and affirmed the trial court’s judgment denying the taxpayers’ claim for a tax refund.