Upjohn Co. v. Rylander

PATTERSON, Justice.

This is a franchise tax case. 1 The Upjohn Company sued the Comptroller 2 for a refund of $1,391,740.40 in franchise taxes and interest paid under protest on receipts generated by its Texas sales of drugs and medicines. Both parties filed motions for summary judgment. The district court granted the Comptroller’s motion and denied Upjohn’s motion.

The question in this case is whether section 171.104 of the Texas Tax Code permits a taxpayer to exclude receipts generated from its Texas sales of drugs and medicines when its franchise taxes are based on either taxable capital or…