Brennan v. Director of Revenue

WHITE, Judge.

Texas imposes one tax on corporations doing business in that state and calls it a “franchise tax.”1 The tax is calculated by comparing a net income component and a net capital component; the tax due is the larger of the two components. Missouri allows an income tax credit for income tax paid to another state.2 In Herschend v. Director of Revenue,3 this Court held that, despite its name, the Tennessee “excise tax” was essentially identical to Missouri’s income tax and, therefore, it was an income tax for § 143.081 purposes. In this case, the taxpayers ask the Court to extend…