Here are two different takes on the Texas district lines being thrown out by the Supreme Court:
Texas Supreme Court Rejects Challenge to Texas Franchise Tax
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Divided 6-2, the Texas Supreme Court upheld the state franchise tax (now known as the “margins tax”) against a constitutional challenge brought by Nestle. Texas District Line
Justice Hecht’s majority opinion contains a detailed explanation of the formula behind the franchise tax (as well as its history in Texas). For purposes of this case, the key step of the formula is a choice between a 0.5% tax rate (applied to retail and wholesale operations) and a 1.0% tax rate (applied to everyone else).
The core of Nestle’s argument was that the tax unfairly set its tax rate at 1% because of its out-of-state manufacturing operations, rather than 0.5% based on what it actually did inside Texas (distribute products it made elsewhere).
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Supreme Court orders new Texas election redistricting
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Texas District Lines
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