Attorney General of Texas

Transcription

1 Attorney General of Texas Financial and Tax Litigation Division Comptroller of Public Accounts Case List and Summary of Issues OCTOBER 2012

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3 Table of Contents Table of Cases xiii Franchise Tax Allcat Claims Service, L.P. v. Combs, et al. 1 Atlantic Casualty Insurance Co. v. Combs, et al. 1 BASA Resources, Inc. v. Combs, et al. 2 Basic Energy Services, Inc. v. Combs, et al. 2 Bigham Brothers, Inc. v. Combs, et al. 3 CGG Veritas Services (U.S.) Inc. v. Combs, et al. 3 Chevron Chemical Company, L.L.C., as Successor to Chevron Chemical Company v. Strayhorn, et al. Chevron U.S.A. Holdings, Inc. v. Combs, et al. 4 Deer Run/Bassword, LLC, et al. v. Combs, et al. 5 Exxon Mobil Corp. v. Combs, et al. 5 Fairfield Industries, Inc. v. Combs, et al. 6 Fairfield Industries, Inc. v. Strayhorn, et al. 6 Fairfield Industries, Inc. v. Strayhorn, et al. 7 Flint Energy Services, Inc. v. Combs, et al. 7 Graphic Packaging Corp. v. Combs, et al. 8 Gulf Chemical & Metallurgical Corp. v. Combs 9 Gulf Chemical & Metallurgical Corp. v. Compt., et al. 9 Gulf Chemical & Metallurgical Corporation v. Strayhorn, et al. 10 Ingersoll-Rand Company v. Combs, et al. 10 Keystone RV Company Inc. v. Combs, et al. 11 Keystone RV Company, Inc. v. Combs, et al. 11 Liaison Resources LP v. Combs, et al. 12 Lone Star Industries, Inc. v. Combs, et al. 12 Memphis Folding Stairs, Inc., a Tennessee Corp. v. State of Texas, An Independent State Entity Nestle USA, Inc. v. Combs, et al. 13 Nestle USA, Inc., In Re 14 Newpark Resources, Inc. v. Combs, et al. 14 Nextera Energy Power Marketing, LLC v. Combs, et al. 15 Nike USA, Inc. v. Combs 15 PEK, Inc. dba Serviceline Transport v. Combs, et al

4 Renewable Energy Systems v. Combs, et al. 16 Rent-A-Center, Inc. v. Combs, et al. 17 Seltex, Inc. v. Combs, et al. 17 Service King Paint & Body, LLC as Successor to Alamo Body & Paint, Inc. v. Combs, et al. Shell Trading Services Co. v. Combs, et al. 18 Sunbelt Custom Mineral, LLC v. Combs, et al. 19 Taylor & Hill, Inc. v. Combs, et al. 20 TD Auto Finance, LLC v. Combs, et al. 20 TGS-NOPEC Geophysical Company v. Strayhorn, et al. 21 Titan Transportation, LP v. Combs, et al. 22 TLH Enterprises, Inc. v. Combs, et al. 22 TTX Company v. Combs, et al. 23 Tyson Fresh Meats, Inc. v. Combs, et al. 23 Tyson Fresh Meats, Inc. v. Combs, et al. 24 United Space Alliance, LLC v. Combs, et al. 24 Viacom International, Inc. v. Strayhorn, et al. 25 Winstead, PC v. Combs, et al. 25 Sales Tax 7-Eleven, Inc. v. Strayhorn, et al Eleven, Inc. v. Strayhorn, et al Charter, LLC v. Combs, et al. 28 Agri-Plex Heating & Cooling, LLC v. Combs, et al. 28 Alfred F. Mares v. Combs 29 Allstate Ins. Co. v. Combs, et al. 29 Al-Noor Impex Corporation and Azim Bhaiwala v. Gregg Abbott and Susan Combs 30 Apache Corp. v. Combs, et al. 30 Apache Corp. vs. Compt., et al. 31 Austin Engineering Co., Inc. v. Combs, et al. 31 Awad, Mike v. Strayhorn, et al. 32 Bhaiwala Corporation, et al. v. Gregg Abbott and Susan Combs 33 BHR Texas L.P. v. Combs, et al. 33 BJ400XP, Inc. v. Combs, et al. 34 Blue Cross and Blue Shield of Texas, Inc. v. Strayhorn, et al. 34 Blue Cross and Blue Shield of Texas, Inc. v. Strayhorn, et al. 35 BP America, Inc. v. Combs, et al November 19, 2012 Page iv

5 Broadwing Corporation v. Strayhorn, et al. 36 BTA Oil Producers, LLC v. Combs, et al. 37 Buckhorn Aviation, Inc. v. Combs, et al. 37 Budget Prepay, Inc. v. Combs, et al. 38 C.C. Carlton Industries, Ltd. v. Combs, et al. 38 Caledon Aviation, LLC v. Combs, et al. 39 Captain Hook-Austin, Inc. v. Combs, et al. 39 CEC Entertainment, Inc. v. Strayhorn, et al. 40 Centreport Partners, L.P. v. Combs, et al. 40 Chapal Zenray, Inc. v. Combs, et al. 40 Church & Dwight Company, Inc. v. Rylander, et al. 41 Cirrus Exploration Company v. Combs, et al. 42 City of Dickinson v. Combs 42 City of Webster and the Webster Economic Development Corporation v. Strayhorn 43 Continental Airlines, Inc. v. Combs, et al. 44 Courthouse Direct.com v. Combs, et al. 44 Day Cruises Maritime, L.L.C. v. Strayhorn, et al. 45 Day Cruises Maritime, L.L.C. v. Strayhorn, et al. 45 Del Monte Fresh Produce (Texas), Inc. v. Combs, et al. 46 Dish Purchasing Corp. v. Combs, et al. 46 Dish Purchasing Corp. v. Combs, et al. 47 Doubletree DTWC Corp. v. Combs, et al. (Formerly Embassy Equity Development Corporation, et al. v. Strayhorn, et al.) DSC Enterprises, Inc. v. Combs, et al. 48 DSW Shoe Warehouse, Inc. v. Combs, et al. 49 Energy Education of Montana, Inc. v. Combs 49 Energy Education of Montana, Inc. v. Combs, et al. 50 EOG Resources, Inc. v. Combs, et al. 50 Evo Inc. v. Combs 51 ExxonMobil Oil Corporation v. Combs, et al. 51 F M Express Food Mart, Inc., and Fouad Hanna Mekdessi v. Rylander, et al. 52 Fair Isaac Corp. v. Combs, et al. 52 Fencecrete America Manufacturing, Inc. v. Combs, et al. 53 First Class Enterprises, Inc. v. Combs, et al. 53 GEO Group, Inc., The v. Combs, et al. 54 Glazier Foods Co. v. Combs, et al November 19, 2012 Page v

6 Glazier Foods Co. v. Combs, et al. 55 Grande Communications Networks, LLC v. Combs, et al. 55 Grande Communications Networks, LLC v. Combs, et al. 56 Grocers Supply Co., Inc. v. Combs, et al. 56 Grocers Supply Co., Inc. v. Combs, et al. 57 Grocers Supply Institutional Convenience Inc. v. Combs, et al. 57 Grocers Supply Produce Co. v. Combs, et al. 57 Grocers Supply-Institutional-Convenience, Inc. v. Combs, et al. 58 Grocers Supply-Institutional-Convenience, Inc. v. Rylander, et al. 58 Grocers Supply-Produce Co., Inc. v. Combs, et al. 58 GSC Enterprises, Inc. v. Strayhorn, et al. 59 H.K. Global Trading, Ltd. v. Combs, et al. 59 Harsh's Guru Krupa, LLC v. Combs, et al. 60 Health Care Service Corp. v. Combs, et al. 60 Health Care Service Corp., et al. vs. Compt., et al. 61 Health Care Services, Corp. v. Combs 62 High Tech Document Service v. Combs, et al. 62 Home Depot, USA, Inc. v. Strayhorn, et al. 63 Hospice DME of Texas, Inc. v. Combs, et al. 63 Hospice DME of West Texas, Inc. v. Combs, et al. 64 Hospice DME, Inc. v. Combs, et al. 64 Hotel Paso Del Norte, Inc. v. Combs, et al. 64 Intrepid Directional Drilling Specialists, Ltd. v. Combs, et al. 65 J.E. Dunn Construction Co. v. Combs, et al. 65 Kenneth O. Lester Co., et al. v. Susan Combs, Compt., et al. 66 Kenneth O. Lester, Co., Inc. v. Combs, et al. 66 Krishna Bhavana, LLC and Krishna Kothari v. Combs, et al. 67 KST Electric, Ltd. v. Combs, et al. 67 La Frontera Lodging Partners, L.P., Tex-Air Investment Company, John Q. Hammons Hotels Two, L.P. and John Q. Hammons Hotels, L.P. v. Strayhorn, et al. Leoncito Plant, L.L.C. v. Combs, et al. 68 LH Air, LLC v. Combs, et al. 69 Lockheed Martin Corp. v. Combs, et al. 69 Makara Enterprise, LP v. Combs, et al. 70 Marlin Leasing Corp. v. Combs, et al. 70 Matoka, Inc. vs. Compt., et al November 19, 2012 Page vi

7 Maxus Energy Corporation as Successor in Interest to Maxus Corporate Company v. Strayhorn, et al. Modern Furniture, Inc. and Thanh Thuan Ly v. Combs, et al. 72 Morgan Buildings and Spa v. Combs, et al. 72 NCO Financial Systems, Inc. v. Combs, et al. 73 OA, LLC v. Combs, et al. 73 Olmos Abatement, Inc. v. Compt., et al. 74 Pointsmith Point of Purchase Management Services, LP v. Combs, et al. 74 Pop Restaurants, LLC. v. Combs, et al. 75 Rackspace US Inc. v. Combs, et al. 75 Richard's Heating & Air Conditioning, Inc. v. State of Texas, et al. 76 Richmont Aviation, Inc. v. Combs, et al. 76 Roadway Express, Inc. v. Rylander, et al. 77 Roark Amusement & Vending, L.P. v. Combs, et al. 77 Roark Amusement & Vending, L.P. v. Strayhorn, et al. 78 Roark Amusement & Vending, L.P. v. Strayhorn, et al. 79 Robert Garriott v. Combs, et al. 80 Root's Rocks, Inc. v. Combs, et al. 80 Ryan, LLC v. Combs 81 Salim Abbas Merchant v. Combs, et al. 81 Sanadco, Inc. and Mahmoud A. Isba aka Moumoud Ahmed Abuisba aka Mike Isba v. Combs, et al. Shehzad Dhanani v. Combs, et al. 82 Southern Union Company v. Strayhorn, et al. 83 Southern Union Gas v. Combs, et al. 83 Southwest Royalties, Inc. v. Combs, et al. 84 Southwest Royalties, Inc. v. Combs, et al. 84 Sysco Food Services of Austin, Inc. v. Strayhorn, et al. 85 Sysco Food Services of Houston, L.P. (fka Sysco Food Service of Houston, Inc.) v. Rylander, et al. Sysco Food Services of Houston, L.P. (fka Sysco Food Services of Houston, Inc.) v. Strayhorn, et al. Sysco Food Services of San Antonio, LP, et al. v. Combs 86 Tara Levy, Robert Tycast, Vivian Daywood, John Butler, Rocky & Linda Piazza and Paul DeNucci, et al. v. Combs, et al. Tecpetrol Operating, LLC v. Combs, et al. 87 Texas Gulf, Inc. v. Bullock, et al. 88 Texas Health Presbyterian Hospital Denton v. Combs, et al November 19, 2012 Page vii

8 Texas Waste Systems, Inc. v. Combs, et al. 89 The Neiman-Marcus Group, Inc. v. Combs, et al. 89 Tree of Life, Inc. v. Combs, et al. 90 Tree of Life, Inc. v. Strayhorn, et al. 90 Tres Palacios Gas Storage, LLC v. Combs, et al. 91 U.S. Food Service, Inc. f/k/a White Swan, Inc. v. Combs, et al. 91 U.S. Foodservice, Inc., et al. v. Combs, et al. 92 U.S. Foodservices, Inc. v. Combs, et al. 92 United Space Alliance, LLC v. Combs, et al. 92 Verizon Business Network Services, Inc. v. Compt. Et. Al. 93 W. Robert Brown v. Combs, et al. 94 Walton Enterprises, Ltd. v. Combs, et al. 94 Warren Transportation, LLC v. Combs, et al. 95 Watson Sysco Food Services, Inc. v. Strayhorn, et al. 95 Weatherization Management Group, LLC, In re 96 White Swan, Inc. v. Strayhorn, et al. 96 White Swan, Inc. v. Strayhorn, et al. 97 Wyndham International Operating Partnership, LP v. Strayhorn, et al. 97 Zale Delaware, Inc. v. Combs, et al. 98 Zimmer US, Inc. v. Combs, et al. 98 Insurance Tax American National Insurance Company v. Combs, et al. 101 American National Life Insurance Company of Texas v. Combs, et al. 101 Argonaut Insurance Company and Argonaut Great Central v. Combs, et al. 102 Fidelity National Title Ins. Co. v. Combs, et al. 102 Imperial Fire and Casualty Company v. Combs, et al. 103 Standard Life and Accident Insurance Company v. Combs, et al. 103 Warranty Underwriters Insurance Company v. Rylander, et al. 104 Other Taxes 35 Bar & Grill, LLC, et al. v. Compt., et al. 105 A & D Interests, Inc., dba Heartbreakers v. Compt., et al. 105 Badger Tavern L.P. et al. v. Susan Combs, Compt., et al. 105 Bassam Jaber Hantouli v. Susan Combs, Compt., et al. 106 Benelux Corp., dba The Palazio & Ziggfeld's Entertainment, Inc., dba Expose v. Susan Combs, Compt., et al. Benelux Corp., dba, et al. v. Compt., et al November 19, 2012 Page viii

9 Combs, et al. v. Texas Entertainment Association, Inc. and Karpod, Inc. 107 D. Houston, Inc., dba v. Compt., et al. 108 Dickens, Larry & Mary and Kevin & Jennifer Zaputil v. Combs and Connie Perry, Grimes County Tax Assessor and Collector El Paso Entertainment, Inc. dba v. Compt., et al. 109 Emirates, Inc. v. Combs, et al. 110 Enterprise Operating Co., Inc., dba v. Compt., et al. 110 ER Gaston, Ltd. dba The Elbow Room v. Combs 111 FW, Inc. and S & S Bros., Inc. v. Compt., et al. 111 Golden Productions JCG Fort Worth LLC., dba v. Compt., et al. 112 I Gotcha, Inc., dba, et al. v. Compt., et al. 112 Isis Partners, L.P., et al. vs. Combs, et al. 113 John P. Bellam, dba Showgirl v. Compt., et al. 113 Karpod, Inc., dba, et al. v. Compt., et al. 113 Manana Entertainment, Inc., dba v. Susan Combs, Compt., et al. 114 MC/VC, Inc. v. Compt., et al. 114 North By East, Inc., et al. v. Compt., et al. 115 Robert Davis dba Davis Funeral Chapel v. Combs, et al. 115 RPM Entertainment, Inc., et al. v. Compt., et al. 116 Savvy, Inc., dba v. Compt., et al. 116 SSD Enterprises, Inc. v. Compt., et al. 117 Texas Cabaret, Inc., dba, et al. v. Compt., et al. 117 Texas Richmond Corp. v. Compt., et al. 117 The King Lounge, Inc., dba v. Compt., et al. 118 The Men's Club Corp. v. Compt., et al. 118 Closed Cases Air Liquide America, L.P. v. Compt., et al. 121 Anadarko Austin Chalk, Co., Anadarko Petroleum Corp., and Anadarko E&P Co., LP v. Combs, et al. Anderson Merchandisers, LP v. Combs, et al. 122 Apache Corp. vs Compt., et al. 122 AROC (Texas), Inc. v. Combs, et al. 122 BBB Trading Co. v. State of Texas, et al. 123 Bell Helicopter Textron, Inc. v. Compt., et al. 123 Big Tex Aviation, Inc. v. Combs, et al. 124 Boat Town, Inc. v. Combs, et al November 19, 2012 Page ix

10 Boeing North America, Inc. v. Strayhorn, et al. 125 Burns, Kevin D. v. Strayhorn, et al. 125 C & T Stone Company v. Rylander, et al. 126 Carino's Italian Kitchen, Inc. v. Combs, et al. 126 Cashiola, James v. Strayhorn, et al. 127 Coastal Industries, Inc. v. Compt., et al. 128 Coca-Cola Company, The v. Strayhorn, et al. 128 Cosmair, Inc. v. Strayhorn, et al. 129 Dow Jones & Company, Inc. v. Combs, et al. 129 EFW, Inc. v. Rylander, et al. 130 EFW, Inc. v. Strayhorn, et al. 130 Florida Management, Inc., et al. v. Compt., et al. 131 Frito-Lay, Inc. v. Compt., et al. 131 Future A's Limited Liability v. Combs, et al. 132 Gift Box Corporation of America, Inc. v. Rylander, et al. 132 GMRI Texas, LP v. Combs 133 GTE Mobilnet of the Southwest, L.L.C. v. Strayhorn, et al. 133 GTE Southwest, Inc. v. Combs, et al. 134 Habib Surani, H.S.N. Enterprises, Inc. v. Tx. Comptroller of Public Accounts 134 Kairos of Texas v. Combs, et al. 135 Laredo Coca-Cola Bottling Company, and Coca-Cola Enterprises, Inc. v. Strayhorn, et al. 135 Lee Construction and Maintenance Company v. Rylander, et al. 136 Liberty Vending Services, Inc. v. Strayhorn, et al. 136 Millennium Inorganic Chemicals, Inc. v. Strayhorn, et al. 137 Mirage Real Estate, Inc., et al. v. Richard Durbin, et al. 137 Price & Company v. Combs, et al. 138 Ranger Fuels & Maintenance, L.L.C. v. Strayhorn, et al. 138 Ranger Fuels and Maintenance, LLC v. Combs, et al. 139 Scott A. Williams v. Combs, et al. 139 Senior Care Consultants, Inc. v. Prevail Systems, Inc., et al. 140 Taco Bell Corp. v. Combs, et al. 140 Texas and Kansas City Cable Partners LP v. Combs, et al. 140 Time Warner Entertainment & Advance Newhouse v. Combs, et al. 141 United Scaffolding, Inc. v. Strayhorn, et al. 142 United Space Alliance, LLC v. Combs, et al. 142 V.H. Salas & Associates, Inc. v. Comptroller 143 November 19, 2012 Page x

11 Vinson Oil Distribution v. Strayhorn, et al. 143 Index 145 November 19, 2012 Page xi

12 November 19, 2012 Page xii

13 Table of Cases 35 Bar & Grill, LLC, et al. v. Compt., et al. 7-Eleven, Inc. v. Strayhorn, et al. 7-Eleven, Inc. v. Strayhorn, et al. 816 Charter, LLC v. Combs, et al. A & D Interests, Inc., dba Heartbreakers v. Compt., et al. Agri-Plex Heating & Cooling, LLC v. Combs, et al. Air Liquide America, L.P. v. Compt., et al. Alfred F. Mares v. Combs Allcat Claims Service, L.P. v. Combs, et al. Allstate Ins. Co. v. Combs, et al. Al-Noor Impex Corporation and Azim Bhaiwala v. Gregg Abbott and Susan Combs American National Insurance Company v. Combs, et al. American National Life Insurance Company of Texas v. Combs, et al. Anadarko Austin Chalk, Co., Anadarko Petroleum Corp., and Anadarko E&P Co., LP v. Combs, et al. Anderson Merchandisers, LP v. Combs, et al. Apache Corp. v. Combs, et al. Apache Corp. vs Compt., et al. Apache Corp. vs. Compt., et al. Argonaut Insurance Company and Argonaut Great Central v. Combs, et al. AROC (Texas), Inc. v. Combs, et al. Atlantic Casualty Insurance Co. v. Combs, et al. Austin Engineering Co., Inc. v. Combs, et al. Awad, Mike v. Strayhorn, et al. Badger Tavern L.P. et al. v. Susan Combs, Compt., et al. BASA Resources, Inc. v. Combs, et al. Basic Energy Services, Inc. v. Combs, et al. Bassam Jaber Hantouli v. Susan Combs, Compt., et al. BBB Trading Co. v. State of Texas, et al. Bell Helicopter Textron, Inc. v. Compt., et al. Benelux Corp., dba The Palazio & Ziggfeld's Entertainment, Inc., dba Expose v. Susan Combs, Compt., et al. Benelux Corp., dba, et al. v. Compt., et al. Bhaiwala Corporation, et al. v. Gregg Abbott and Susan Combs BHR Texas L.P. v. Combs, et al. Big Tex Aviation, Inc. v. Combs, et al. Bigham Brothers, Inc. v. Combs, et al. BJ400XP, Inc. v. Combs, et al. Blue Cross and Blue Shield of Texas, Inc. v. Strayhorn, et al. Blue Cross and Blue Shield of Texas, Inc. v. Strayhorn, et al November 19, 2012 Page xiii

14 Boat Town, Inc. v. Combs, et al. Boeing North America, Inc. v. Strayhorn, et al. BP America, Inc. v. Combs, et al. Broadwing Corporation v. Strayhorn, et al. BTA Oil Producers, LLC v. Combs, et al. Buckhorn Aviation, Inc. v. Combs, et al. Budget Prepay, Inc. v. Combs, et al. Burns, Kevin D. v. Strayhorn, et al. C & T Stone Company v. Rylander, et al. C.C. Carlton Industries, Ltd. v. Combs, et al. Caledon Aviation, LLC v. Combs, et al. Captain Hook-Austin, Inc. v. Combs, et al. Carino's Italian Kitchen, Inc. v. Combs, et al. Cashiola, James v. Strayhorn, et al. CEC Entertainment, Inc. v. Strayhorn, et al. Centreport Partners, L.P. v. Combs, et al. CGG Veritas Services (U.S.) Inc. v. Combs, et al. Chapal Zenray, Inc. v. Combs, et al. Chevron Chemical Company, L.L.C., as Successor to Chevron Chemical Company v. Strayhorn, et al. Chevron U.S.A. Holdings, Inc. v. Combs, et al. Church & Dwight Company, Inc. v. Rylander, et al. Cirrus Exploration Company v. Combs, et al. City of Dickinson v. Combs City of Webster and the Webster Economic Development Corporation v. Strayhorn Coastal Industries, Inc. v. Compt., et al. Coca-Cola Company, The v. Strayhorn, et al. Combs, et al. v. Texas Entertainment Association, Inc. and Karpod, Inc. Continental Airlines, Inc. v. Combs, et al. Cosmair, Inc. v. Strayhorn, et al. Courthouse Direct.com v. Combs, et al. D. Houston, Inc., dba v. Compt., et al. Day Cruises Maritime, L.L.C. v. Strayhorn, et al. Day Cruises Maritime, L.L.C. v. Strayhorn, et al. Deer Run/Bassword, LLC, et al. v. Combs, et al. Del Monte Fresh Produce (Texas), Inc. v. Combs, et al. Dickens, Larry & Mary and Kevin & Jennifer Zaputil v. Combs and Connie Perry, Grimes County Tax Assessor and Collector Dish Purchasing Corp. v. Combs, et al. Dish Purchasing Corp. v. Combs, et al. Doubletree DTWC Corp. v. Combs, et al. (Formerly Embassy Equity Development Corporation, et al. v. Strayhorn, et al.) Dow Jones & Company, Inc. v. Combs, et al November 19, 2012 Page xiv

15 DSC Enterprises, Inc. v. Combs, et al. DSW Shoe Warehouse, Inc. v. Combs, et al. EFW, Inc. v. Rylander, et al. EFW, Inc. v. Strayhorn, et al. El Paso Entertainment, Inc. dba v. Compt., et al. Emirates, Inc. v. Combs, et al. Energy Education of Montana, Inc. v. Combs Energy Education of Montana, Inc. v. Combs, et al. Enterprise Operating Co., Inc., dba v. Compt., et al. EOG Resources, Inc. v. Combs, et al. ER Gaston, Ltd. dba The Elbow Room v. Combs Evo Inc. v. Combs Exxon Mobil Corp. v. Combs, et al. ExxonMobil Oil Corporation v. Combs, et al. F M Express Food Mart, Inc., and Fouad Hanna Mekdessi v. Rylander, et al. Fair Isaac Corp. v. Combs, et al. Fairfield Industries, Inc. v. Combs, et al. Fairfield Industries, Inc. v. Strayhorn, et al. Fairfield Industries, Inc. v. Strayhorn, et al. Fencecrete America Manufacturing, Inc. v. Combs, et al. Fidelity National Title Ins. Co. v. Combs, et al. First Class Enterprises, Inc. v. Combs, et al. Flint Energy Services, Inc. v. Combs, et al. Florida Management, Inc., et al. v. Compt., et al. Frito-Lay, Inc. v. Compt., et al. Future A's Limited Liability v. Combs, et al. FW, Inc. and S & S Bros., Inc. v. Compt., et al. GEO Group, Inc., The v. Combs, et al. Gift Box Corporation of America, Inc. v. Rylander, et al. Glazier Foods Co. v. Combs, et al. Glazier Foods Co. v. Combs, et al. GMRI Texas, LP v. Combs Golden Productions JCG Fort Worth LLC., dba v. Compt., et al. Grande Communications Networks, LLC v. Combs, et al. Grande Communications Networks, LLC v. Combs, et al. Graphic Packaging Corp. v. Combs, et al. Grocers Supply Co., Inc. v. Combs, et al. Grocers Supply Co., Inc. v. Combs, et al. Grocers Supply Institutional Convenience Inc. v. Combs, et al. Grocers Supply Produce Co. v. Combs, et al. Grocers Supply-Institutional-Convenience, Inc. v. Combs, et al. Grocers Supply-Institutional-Convenience, Inc. v. Rylander, et al. Grocers Supply-Produce Co., Inc. v. Combs, et al November 19, 2012 Page xv

16 GSC Enterprises, Inc. v. Strayhorn, et al. GTE Mobilnet of the Southwest, L.L.C. v. Strayhorn, et al. GTE Southwest, Inc. v. Combs, et al. Gulf Chemical & Metallurgical Corp. v. Combs Gulf Chemical & Metallurgical Corp. v. Compt., et al. Gulf Chemical & Metallurgical Corporation v. Strayhorn, et al. H.K. Global Trading, Ltd. v. Combs, et al. Habib Surani, H.S.N. Enterprises, Inc. v. Tx. Comptroller of Public Accounts Harsh's Guru Krupa, LLC v. Combs, et al. Health Care Service Corp. v. Combs, et al. Health Care Service Corp., et al. vs. Compt., et al. Health Care Services, Corp. v. Combs High Tech Document Service v. Combs, et al. Home Depot, USA, Inc. v. Strayhorn, et al. Hospice DME of Texas, Inc. v. Combs, et al. Hospice DME of West Texas, Inc. v. Combs, et al. Hospice DME, Inc. v. Combs, et al. Hotel Paso Del Norte, Inc. v. Combs, et al. I Gotcha, Inc., dba, et al. v. Compt., et al. Imperial Fire and Casualty Company v. Combs, et al. Ingersoll-Rand Company v. Combs, et al. Intrepid Directional Drilling Specialists, Ltd. v. Combs, et al. Isis Partners, L.P., et al. vs. Combs, et al. J.E. Dunn Construction Co. v. Combs, et al. John P. Bellam, dba Showgirl v. Compt., et al. Kairos of Texas v. Combs, et al. Karpod, Inc., dba, et al. v. Compt., et al. Kenneth O. Lester Co., et al. v. Susan Combs, Compt., et al. Kenneth O. Lester, Co., Inc. v. Combs, et al. Keystone RV Company Inc. v. Combs, et al. Keystone RV Company, Inc. v. Combs, et al. Krishna Bhavana, LLC and Krishna Kothari v. Combs, et al. KST Electric, Ltd. v. Combs, et al. La Frontera Lodging Partners, L.P., Tex-Air Investment Company, John Q. Hammons Hotels Two, L.P. and John Q. Hammons Hotels, L.P. v. Strayhorn, et al. Laredo Coca-Cola Bottling Company, and Coca-Cola Enterprises, Inc. v. Strayhorn, et al. Lee Construction and Maintenance Company v. Rylander, et al. Leoncito Plant, L.L.C. v. Combs, et al. LH Air, LLC v. Combs, et al. Liaison Resources LP v. Combs, et al. Liberty Vending Services, Inc. v. Strayhorn, et al. Lockheed Martin Corp. v. Combs, et al. Lone Star Industries, Inc. v. Combs, et al November 19, 2012 Page xvi

17 Makara Enterprise, LP v. Combs, et al. Manana Entertainment, Inc., dba v. Susan Combs, Compt., et al. Marlin Leasing Corp. v. Combs, et al. Matoka, Inc. vs. Compt., et al. Maxus Energy Corporation as Successor in Interest to Maxus Corporate Company v. Strayhorn, et al. MC/VC, Inc. v. Compt., et al. Memphis Folding Stairs, Inc., a Tennessee Corp. v. State of Texas, An Independent State Entity Millennium Inorganic Chemicals, Inc. v. Strayhorn, et al. Mirage Real Estate, Inc., et al. v. Richard Durbin, et al. Modern Furniture, Inc. and Thanh Thuan Ly v. Combs, et al. Morgan Buildings and Spa v. Combs, et al. NCO Financial Systems, Inc. v. Combs, et al. Nestle USA, Inc. v. Combs, et al. Nestle USA, Inc., In Re Newpark Resources, Inc. v. Combs, et al. Nextera Energy Power Marketing, LLC v. Combs, et al. Nike USA, Inc. v. Combs North By East, Inc., et al. v. Compt., et al. OA, LLC v. Combs, et al. Olmos Abatement, Inc. v. Compt., et al. PEK, Inc. dba Serviceline Transport v. Combs, et al. Pointsmith Point of Purchase Management Services, LP v. Combs, et al. Pop Restaurants, LLC. v. Combs, et al. Price & Company v. Combs, et al. Rackspace US Inc. v. Combs, et al. Ranger Fuels & Maintenance, L.L.C. v. Strayhorn, et al. Ranger Fuels and Maintenance, LLC v. Combs, et al. Renewable Energy Systems v. Combs, et al. Rent-A-Center, Inc. v. Combs, et al. Richard's Heating & Air Conditioning, Inc. v. State of Texas, et al. Richmont Aviation, Inc. v. Combs, et al. Roadway Express, Inc. v. Rylander, et al. Roark Amusement & Vending, L.P. v. Combs, et al. Roark Amusement & Vending, L.P. v. Strayhorn, et al. Roark Amusement & Vending, L.P. v. Strayhorn, et al. Robert Davis dba Davis Funeral Chapel v. Combs, et al. Robert Garriott v. Combs, et al. Root's Rocks, Inc. v. Combs, et al. RPM Entertainment, Inc., et al. v. Compt., et al. Ryan, LLC v. Combs Salim Abbas Merchant v. Combs, et al November 19, 2012 Page xvii

18 Sanadco, Inc. and Mahmoud A. Isba aka Moumoud Ahmed Abuisba aka Mike Isba v. Combs, et al. Savvy, Inc., dba v. Compt., et al. Scott A. Williams v. Combs, et al. Seltex, Inc. v. Combs, et al. Senior Care Consultants, Inc. v. Prevail Systems, Inc., et al. Service King Paint & Body, LLC as Successor to Alamo Body & Paint, Inc. v. Combs, et al. Shehzad Dhanani v. Combs, et al. Shell Trading Services Co. v. Combs, et al. Southern Union Company v. Strayhorn, et al. Southern Union Gas v. Combs, et al. Southwest Royalties, Inc. v. Combs, et al. Southwest Royalties, Inc. v. Combs, et al. SSD Enterprises, Inc. v. Compt., et al. Standard Life and Accident Insurance Company v. Combs, et al. Sunbelt Custom Mineral, LLC v. Combs, et al. Sysco Food Services of Austin, Inc. v. Strayhorn, et al. Sysco Food Services of Houston, L.P. (fka Sysco Food Service of Houston, Inc.) v. Rylander, et al. Sysco Food Services of Houston, L.P. (fka Sysco Food Services of Houston, Inc.) v. Strayhorn, et al. Sysco Food Services of San Antonio, LP, et al. v. Combs Taco Bell Corp. v. Combs, et al. Tara Levy, Robert Tycast, Vivian Daywood, John Butler, Rocky & Linda Piazza and Paul DeNucci, et al. v. Combs, et al. Taylor & Hill, Inc. v. Combs, et al. TD Auto Finance, LLC v. Combs, et al. Tecpetrol Operating, LLC v. Combs, et al. Texas and Kansas City Cable Partners LP v. Combs, et al. Texas Cabaret, Inc., dba, et al. v. Compt., et al. Texas Gulf, Inc. v. Bullock, et al. Texas Health Presbyterian Hospital Denton v. Combs, et al. Texas Richmond Corp. v. Compt., et al. Texas Waste Systems, Inc. v. Combs, et al. TGS-NOPEC Geophysical Company v. Strayhorn, et al. The King Lounge, Inc., dba v. Compt., et al. The Men's Club Corp. v. Compt., et al. The Neiman-Marcus Group, Inc. v. Combs, et al. Time Warner Entertainment & Advance Newhouse v. Combs, et al. Titan Transportation, LP v. Combs, et al. TLH Enterprises, Inc. v. Combs, et al. Tree of Life, Inc. v. Combs, et al. Tree of Life, Inc. v. Strayhorn, et al November 19, 2012 Page xviii

19 Tres Palacios Gas Storage, LLC v. Combs, et al. TTX Company v. Combs, et al. Tyson Fresh Meats, Inc. v. Combs, et al. Tyson Fresh Meats, Inc. v. Combs, et al. U.S. Food Service, Inc. f/k/a White Swan, Inc. v. Combs, et al. U.S. Foodservice, Inc., et al. v. Combs, et al. U.S. Foodservices, Inc. v. Combs, et al. United Scaffolding, Inc. v. Strayhorn, et al. United Space Alliance, LLC v. Combs, et al. United Space Alliance, LLC v. Combs, et al. United Space Alliance, LLC v. Combs, et al. V.H. Salas & Associates, Inc. v. Comptroller Verizon Business Network Services, Inc. v. Compt. Et. Al. Viacom International, Inc. v. Strayhorn, et al. Vinson Oil Distribution v. Strayhorn, et al. W. Robert Brown v. Combs, et al. Walton Enterprises, Ltd. v. Combs, et al. Warranty Underwriters Insurance Company v. Rylander, et al. Warren Transportation, LLC v. Combs, et al. Watson Sysco Food Services, Inc. v. Strayhorn, et al. Weatherization Management Group, LLC, In re White Swan, Inc. v. Strayhorn, et al. White Swan, Inc. v. Strayhorn, et al. Winstead, PC v. Combs, et al. Wyndham International Operating Partnership, LP v. Strayhorn, et al. Zale Delaware, Inc. v. Combs, et al. Zimmer US, Inc. v. Combs, et al November 19, 2012 Page xix

20 November 19, 2012 Page xx

21 Franchise Tax Allcat Claims Service, L.P. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest & UDJA $96, /01/2008 through 12/31/2009 7/29/2011 Van Oort, Kevin Martens, James F. Seay, Michael B. Traphagan, Amanda M. Leonard, Lacy L. Martens, Todd & Leonard / Austin Issue: Whether certain payments made by Plaintiff to subcontractors should be excluded from total revenue. Whether certain payments made by Plaintiff to subcontractors should be included in COGS. Whether the Comptroller's application of (g)(3) and violates the Equal Protection clause. Whether imposition of the tax on a limited partnership violates the Bullock Amendment. Status: Answer filed. Atlantic Casualty Insurance Co. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest $63, Report Year /26/2012 Phillips, Wade Martens, James F. Martens, Todd & Leonard / Austin November 19, 2012 Page 1

22 Traphagan, Amanda M. Leonard, Lacy L. Issue: Whether Plaintiff is exempt from the franchise tax as a nonadmitted insurance organization under (a). Status: Discovery in progress. BASA Resources, Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest $302, Report Years /14/2012 Jones, Matthew C. Martens, James F. Traphagan, Amanda M. Leonard, Lacy L. Martens, Todd & Leonard / Austin Issue: Whether funds transferred by the Plaintiff to a limited partnership, for which Plaintiff is the GP, are eligible to be excluded from total revenue as either: i) fiduciary funds per (f) or ii) the tax basis of a security per (g-2). Whether the amount of such funds transferred to the limited partnerhsip are eligible for inclusion in the COGS deduction. Whether a partial interest in the net profits to be generated from an oil lease constitute real property. Status: Trial set for 05/06/13. Basic Energy Services, Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Refund $1,921, Report year /6/2011 Van Oort, Kevin Page 2

23 Colmenero, David E. Freeman, Jason Meadows, Collier, Reed, Cousins, Crouch & Ungerman, LLP / Dallas Issue: Whether Plaintiff's election to utilize the compensation deduction disqualifies Plaintiff from filing an amended report for the same year claiming the COGS deduction. Whether detrimental reliance would require the Comptroller to accept a change in Plaintiff's election of deduction. Status: Hearing on cross-motions for summary judgment, previously set for 07/16/12, has been passed. Bigham Brothers, Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest $38, Report years /21/2011 Eldred, Charles K. Martens, James F. Traphagan, Amanda M. Leonard, Lacy L. Martens, Todd & Leonard / Austin Issue: Whether Plaintiff's election to file an EZ report disqualifies the Plaintiff from subsequently claiming the COGS deduction for the same report year. Status: Trial set for 08/20/12, has been passed. CGG Veritas Services (U.S.) Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest $1,483, Report Year /2/2012 November 19, 2012 Page 3

24 Johnson, Ronald Martens, James F. Traphagan, Amanda M. Leonard, Lacy L. Martens, Todd & Leonard / Austin Issue: Whether the costs incurred in providing seismic data are eligible to be included in COGS. Status: Trial set for 03/18/13. Chevron Chemical Company, L.L.C., as Successor to Chevron Chemical Company v. Strayhorn, et al. Cause Number: D-1-GN AG Case #: /6/2006 Franchise Tax; Refund $559, Van Oort, Kevin Eidman, Mark W. Langenberg, Ray Sigel, Doug Scott, Douglass & McConnico, L.L.P. / Austin Issue: Whether the Comptroller correctly applied Plaintiff s business loss carry-forward on earned surplus during years when the earned surplus surtax was computed at zero. Status: Case placed on Dismissal docket for 03/28/07; Motion to Retain granted 12/23/08. Chevron U.S.A. Holdings, Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Refund $1,335, Report Years /5/2012 Page 4

25 Phillips, Wade Eidman, Mark W. Langenberg, Ray Sigel, Doug Scott, Douglass & McConnico, L.L.P. / Austin Issue: Whether Plaintiff is eligible, under former , for a franchise tax deduction based on sales and use tax paid on the purchase of equipment used for manufacturing. Status: Answer filed. Deer Run/Bassword, LLC, et al. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest $287, Report Years & /14/2012 McDonald, Charles Nolan, Peter A. Winstead PC / Austin Issue: Whether a group of affiliated entities are engaged in a unitary business. Whether certain entities within the affiliated group are passive entities under Status: Discovery in progress. Exxon Mobil Corp. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Refund $16,347, Report Years /16/2010 November 19, 2012 Page 5

26 Cloudt, Jim B. Taylor, III, Jasper G. Chadha, Jayash M. Fulbright & Jaworski / Houston Issue: Whether the taxpayer is entitled to investment tax credits under subchapter Q (now repealed) of Chapter 171. Whether the statute requires a 90-day "look-back" period for qualifying events. Status: Answer filed. Fairfield Industries, Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest $2,557, /21/2009 Van Oort, Kevin Mann, Christopher S. Jones, Walker, Waechter, Poitevent, Carrere & Denegre, L.L.P / New Orleans, LA Issue: Whether the Comptroller incorrectly apportioned gross receipts from licensing seismic data. Status: Agreed Judgment entered 09/10/12. Fairfield Industries, Inc. v. Strayhorn, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest & Declaratory Judgment $1,107, /13/2005 Page 6

27 Van Oort, Kevin White, John D. Jones, Walker, Waechter, Poitevent, Carrére & Denégre, L.L.P. / The Woodlands Issue: Whether Plaintiff s gross receipts should be treated as receipts from intangibles apportioned based on the location of the payor or the location of the alleged use of data. Whether the transfer of seismic data is a license or the transfer of an intangible for franchise tax apportionment purposes. Plaintiff also requests that penalties be waived and recovery of attorneys' fees. Status: Order consolidating with Fairfield Industries, Inc. v. Compt., et al., Cause No. D-1-GN entered 07/11/07. Agreed Judgment entered 09/10/12. Fairfield Industries, Inc. v. Strayhorn, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest & Declaratory Judgment $769, /7/2006 Van Oort, Kevin White, John D. Jones, Walker, Waechter, Poitevent, Carrére & Denégre, L.L.P. / The Woodlands Issue: Whether Plaintiff s gross receipts should be treated as receipts from intangibles apportioned based on the location of the payor or the location of the alleged use of data. Whether the transfer of seismic data is a license or the transfer of an intangible for franchise tax apportionment purposes. Plaintiff also requests that penalties be waived and recovery of attorneys' fees. Status: Case consolidated into Fairfield Industries, Inc. v. Strayhorn, et al., Cause #GN Agreed Judgment entered 09/10/12. Flint Energy Services, Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: /7/2012 November 19, 2012 Page 7

28 Franchise Tax; Protest $14, Report Year 2010 Cloudt, Jim B. Martens, James F. Traphagan, Amanda M. Leonard, Lacy L. Martens, Todd & Leonard / Austin Issue: Whether Plaintiff may include travel per diem expenses in its COGs deduction. Whether the travel per diem payments qualify as a direct cost. Status: Trial set for 07/01/13. Graphic Packaging Corp. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Refund $1,019, Report Years /27/2012 Van Oort, Kevin Martens, James F. Traphagan, Amanda M. Leonard, Lacy L. Martens, Todd & Leonard / Austin Issue: Whether Plaintiff is entitled to utilize the three-factor apportionment formula described by Art. IV, Sec. 9, of Whether the single-factor apportionment formula is violative of the Due Process Clause and the Commerce Clause. Plaintiff further alleges that a determination of a taxable entity's status as a retailer based on activity occuring outside of Texas is violative of the Commerce Clause, the Due Process Clause, and the Equal and Uniform Clause. Plaintiff further alleges that the Comptroller abused her discretion in failing to waive penalty and interest. Page 8

29 Status: Answer filed. Gulf Chemical & Metallurgical Corp. v. Combs Cause Number: D-1-GN AG Case #: Franchise Tax; Refund $1,357, Report years /13/2011 Van Oort, Kevin Sigel, Doug Scott, Douglass & McConnico, L.L.P. / Austin Issue: Whether a payment/credit from the Plaintiff to Plaintiff's customer should be netted against gross receipts for apportionment purposes. Status: Trial held 10/11/12. Final Judgment in favor of Defendants issued 10/16/12. Gulf Chemical & Metallurgical Corp. v. Compt., et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest & Refund $262, through /2/2008 Van Oort, Kevin Eidman, Mark W. Scott, Douglass & McConnico, L.L.P. / Austin Issue: Whether tax credits were properly applied. Whether gross receipts were properly determined for fee/credit transactions. Whether the officer add-back provisions of the franchise tax are unconstitutional. Whether penalty should be waived. Status: Order granting Motion to Consolidate into Gulf Chemical & Metallurgical Corporation v. Strayhorn, et al, Cause #D-1-GN , entered 09/22/09. Agreed Judgment entered 05/25/12. November 19, 2012 Page 9

30 Gulf Chemical & Metallurgical Corporation v. Strayhorn, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Refund $245, /15/2006 Van Oort, Kevin Eidman, Mark W. Langenberg, Ray Scott, Douglass & McConnico, L.L.P. / Austin Issue: How should processing fees and metals credit be calculated for franchise tax apportionment purposes. Whether Plaintiff is entitled to a refund resulting from the elimination of the addback for officer and director compensation. Status: Order granting Motion to Consolidate with Gulf Chemical & Metallurgical Corporation v. Strayhorn, et al, Cause #D-1-GN , entered 09/22/09. Hearing on Plaintiff's MSJ held on 12/05/11. Plaintiff's motion denied in part and granted in part. Agreed Judgment entered 05/25/12. Ingersoll-Rand Company v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest $2,200, Report year /6/2011 Eldred, Charles K. Fruchtman, David A. Ruskin, David S. Langenberg, Ray Horwood Marcus & Berk Chartered / Chicago, IL Scott, Douglass & McConnico, L.L.P. / Austin Issue: Whether Plaintiff properly calculated the amount of its temporary credit under Section Page 10

31 Status: Discovery in progress. Keystone RV Company Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest & Refund $796, Report years /29/2011 Phillips, Wade Gilliland, David H. Duggins Wren Mann & Romero, LLP / Austin Issue: Whether warranty services provided under contract by a third-party are sufficient to establish nexus. Whether warranty services are within the scope of P.L Whether penalty should be waived. Status: Answer filed. Keystone RV Company, Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Refund $1,015, Report Years 2006 & /12/2012 Phillips, Wade Gilliland, David H. Duggins Wren Mann & Romero, LLP / Austin Issue: Whether warranty services provided under contract by a third-party are sufficient to establish nexus. Whether warranty services are within the scope of P.L Whether penalty should be waived. Status: Answer filed. November 19, 2012 Page 11

32 Liaison Resources LP v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest $96, Report Years /2/2012 Jones, Matthew C. Martens, James F. Leonard, Lacy L. Martens, Todd & Leonard / Austin Issue: Whether Plaintiff is entitled to exclude certain receipts from total revenue under (k) as a staff leasing services company. Whether Plaintiff must utilize the compensation deduction when calculating its taxable margin. Status: Discovery in progress. Lone Star Industries, Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest & Refund $428, Report years /7/2010 Cloudt, Jim B. Eidman, Mark W. Langenberg, Ray Scott, Douglass & McConnico, L.L.P. / Austin Issue: Whether taxpayer's taxable capital should be based on its historical cost without regard to applicable push-down adjustments. Status: Discovery in progress. Page 12

33 Memphis Folding Stairs, Inc., a Tennessee Corp. v. State of Texas, An Independent State Entity Cause Number: CT AG Case #: /21/2012 Franchise Tax; Refund $35, Report Years Johnson, Ronald Yeaglin, Thomas D. Memphis, TN Issue: Whether Plaintiff had sufficient nexus to Texas to be subject to the Texas Franchise Tax. Status: Complaint for Money Damages and Application for the Issuance of a Cease and Desist Order filed 06/21/12. Motion to Dismiss filed 08/30/12. Case dismissed 11/08/12. Nestle USA, Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest $8,682, Report Year /15/2012 Johnson, Ronald Nolan, Peter A. Rabb, Jennifer Patterson Winstead PC / Austin Issue: Whether the two-tiered tax rate and the statutory deductions from total revenue cause the franchise tax to violate the Equal Protection Clause of the U.S. Constitution and the Equal & Uniform Clause of the Texas Constitution. Plaintiff further alleges that a determination of a taxable entity's status as a retailer based in part on activity occurring outside of Texas causes the franchise tax to be violative of the Due Process and Commerce clauses of the U.S. Constitution. November 19, 2012 Page 13

34 Status: Case abated pending resolution of In re: Nestle USA, Inc., Cause No Mandamus Petition denied 10/19/12. Nestle USA, Inc., In Re Cause Number: Franchise Tax; Mandamus, Original Proceeding in the Tx. Sup. Ct. $8,682, Report Year 2012 AG Case #: /25/2012 Craft, Rance L. Nolan, Peter A. Rabb, Jennifer Patterson OAG Solicitor General Division / Austin Winstead PC / Austin Issue: Whether the two-tiered tax rate and the statutory deductions from total revenue cause the franchise tax to violate the Equal Protection Clause of the U.S. Constitution and the Equal & Uniform Clause of the Texas Constitution. Plaintiff further alleges that a determination of a taxable entity's status as a retailer based in part on activity occurring outside of Texas causes the franchise tax to be violative of the Due Process and Commerce clauses of the U.S. Constitution. Status: Petition for Writ of Mandamus filed by Nestle on 06/25/12. State's Response to Petition filed 07/03/12. Nestle's Brief filed 07/26/12. State's Brief filed 08/16/12. Case submitted on oral argument on 09/18/12. Opinion issued 10/19/12, denying Nestle's petition. MRH filed 11/05/12. Newpark Resources, Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: # CV Franchise Tax; Protest $472, Report year 2008 and Report year /21/2011 Van Oort, Kevin Page 14

35 Martens, James F. Leonard, Lacy L. Martens, Todd & Leonard / Austin Issue: Whether certain expenditures attributed to environmental disposal and reclamation services are eligible for the COGS deduction. Whether Plaintiff properly calculated its indirect cost limitation under (f). Whether certain payments to subcontractors should be excluded from revenue. Status: Bench trial held on 05/21-22/12. Judgment for Plaintiff entered 07/02/12. Notice of Appeal filed 08/01/12. Appellant's Motion for Extension of Time to File Brief filed and granted 10/16/12. Appellant's brief due 11/21/12. Nextera Energy Power Marketing, LLC v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest $1,840, /7/2012 Johnson, Ronald Sigel, Doug Scott, Douglass & McConnico, L.L.P. / Austin Issue: Whether certain expenses attributed to the generation and transmission of electricity are eligible for the COGS deduction. Whether Plaintiff properly calculated the amount of its business loss carry forward credit. Whether Plaintiff is entitled to a revenue exclusion for management fee income and interest income. Status: Trial set for 02/19/13. Nike USA, Inc. v. Combs Cause Number: D-1-GN AG Case #: Franchise Tax; Refund and APA $2,456, Report Years /9/2012 Jones, Matthew C. November 19, 2012 Page 15

36 Cowling, David E. Lyda, Kirk Hepworth, Justin Jones Day / Dallas Issue: Whether certain sales should be apportioned to Texas, if, as alleged by Plaintiff, Plaintiff's customer took delivery outside of Texas. Whether the Comptroller's application of the apportionment statute violates the Commerce, Due Process, and Equal Protection clauses of the U.S. Constitution. Whether Comptroller Rule exceeds the scope of the Tax Code. Status: Answer filed. PEK, Inc. dba Serviceline Transport v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest, Injunctive Relief & Declaratory Judgment $78, Report years /16/2011 Eldred, Charles K. Martens, James F. Leonard, Lacy L. Martens, Todd & Leonard / Austin Issue: Whether certain expenses are eligible to be excluded from Plaintiff's revenue as subcontracting payments per (g)(3). Whether Plaintiff prospectively qualifies as a courier and logistics company. Plaintiff also asserts an Equal Protection challenge. Status: Trial previously set for 09/24/12 has been passed. Renewable Energy Systems v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Refund $350, Report year /28/2011 Page 16

37 Jones, Matthew C. Moore, Steven D. McCalla, Dudley D. Jackson Walker, L.L.P / Austin Issue: Whether Plaintiff is exempt from the franchise tax under as being solely engaged in the business of installing solar energy devices. Status: Discovery in progress. Rent-A-Center, Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest $1,162, Report year /11/2011 Cloudt, Jim B. Butcher, Daniel L. Katz, Farley P. Strasburger & Price / Dallas Strasburger & Price / San Antonio Issue: Whether Plaintiff's rent-to-own business qualifies for the 0.5% rate under (b). Whether Plaintiff qualifies for the cost of goods sold deduction. Plaintiff also raises an equal protection clause challenge to: i) the tax rate, and ii) the cost of goods sold deduction. Status: Trial set for 12/10/12. Seltex, Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Injunction, Protest & UDJA $15, Report Years /24/2012 November 19, 2012 Page 17

38 Eldred, Charles K. Martens, James F. Leonard, Lacy L. Martens, Todd & Leonard / Austin Issue: Whether certain expenses are eligible to be excluded from Plaintiff's revenue as either: i) fiduciary funds per (f) or ii) subcontracting payments per (g)(3). Whether Plaintiff is eligible to claim the COGS deduction for its payments to drivers and for truck repairs. Whether Plaintiff prospectively qualifies as a courier and logistics company. Plaintiff also asserts claims under the Equal Protection Clause and the Equal and Uniform Clause. Plaintiff also seeks declaratory relief and injunctive relief. Status: Hearing on inability to pay previously set for 07/31/12 has been passed. Service King Paint & Body, LLC as Successor to Alamo Body & Paint, Inc. v. Combs, et al. Cause Number: D-1-GN AG Case #: /30/2011 Franchise Tax; Protest $40, Report year 2008 Cloudt, Jim B. Martens, James F. Seay, Michael B. Leonard, Lacy L. Martens, Todd & Leonard / Austin Issue: Whether Plaintiff qualifies for the 0.5% rate under (b). Whether revenue from the sale of installed auto parts should be classified as service revenue. Status: Answer filed. Shell Trading Services Co. v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Refund 11/9/2009 Page 18

39 $1,416, Van Oort, Kevin Schmauch, Jason M. Lowy, Peter A. Masters, Paul H. Grimsinger, William O. Vasquez, Jr., Juan Houston Chamberlain, Hrdlicka, White, Williams & Martin / Houston Issue: Whether payments made to certain individuals were payments subject to the officer and director add back provision, notwithstanding taxpayer's contention that it was reimbursed for such salary payments by a third party. Status: Answer filed. Sunbelt Custom Mineral, LLC v. Combs, et al. Cause Number: D-1-GN AG Case #: Franchise Tax; Protest $95, Report Years /16/2012 Jones, Matthew C. Martens, James F. Traphagan, Amanda M. Leonard, Lacy L. Martens, Todd & Leonard / Austin Issue: Whether Plaintiff's election to file an EZ Report disqualifies the Plaintiff from subsequently claiming the COGS deduction for the same report year. Status: Answer filed. November 19, 2012 Page 19