Anderson-Clayton Bros. Funeral Home, Inc. v. Strayhorn

OPINION

Opinion by

Justice PEMBERTON.

In this case, we address a rare uncertainty concerning death and taxes: the franchise tax treatment of earnings from out-of-state investments made by Texas prepaid funeral benefits trusts maintained by Texas funeral homes. Appellants, a group of affiliated funeral homes (“Anderson-CIayton”), took the position that these types of earnings were out-of-state receipts for franchise tax apportionment purposes. The Comptroller of Public Accounts audited Anderson-CIayton and disagreed, contending the earnings were instead Texas receipts. This resulted in a much…