SOUTHWESTERN BELL TELEPHONE COMPANY v. Calvert

SHANNON, Justice.

This appeal concerns the construction of Tex. Tax.-Gen.Ann. art. 11.06, Title 122A, V.A.T.S. The question is whether rental payments paid to the telephone company by those who use the telephone poles are taxable as gross receipts of the telephone company.

Appellant, Southwestern Bell Telephone Company, sued appellees, Robert S. Calvert, Jesse James, and Crawford Martin, to recover $76,350.23 for taxes, penalty, and interest paid under protest. Appellees in their first amended original answer filed a counterclaim for the amount which they claimed appellant owed. Upon trial to…