Texas Supreme Court

In Re Allcat Claims Service, L.p. and John Weakly, Relators

November 28, 201155 Tex. Sup. Ct. J. 103

Summary

The Texas Supreme Court held that the franchise tax does not constitute a tax on the net incomes of Allcat's natural‑person partners, so it does not facially violate Article VIII, Section 24 of the Texas Constitution, and the Court lacks jurisdiction to consider the as‑applied equal‑and‑uniformity challenge. The petition for a writ of mandamus was therefore dismissed. Justice Willett, joined by Justice Lehrmann, dissented in part, arguing the Court overreached its original mandamus jurisdiction.