Calvert v. Union Producing Company

PHILLIPS, Justice.

This appeal involves judgments in two causes tried upon a consolidated record. The two cases presented common issues of fact and of law. They involved the right of the State Comptroller to assess additional gas production taxes, penalties and interest pursuant to an audit made by them. The Texas gas production tax, Art. 3.01, Vernon’s Annotated Statutes, is fixed as a percentage (presently 7 per cent) of the “market value” of the gas at the wellhead. The taxing statute defines “market value” as the “producer’s gross cash receipts,” ab sent proof of fraud or collusion. The…