Texas Supreme Court hears disputed test for sourcing sales tax receipts in NuStar case

The Supreme Court of Texas on Wednesday heard argument in NuStar Energy v. Hancock, a dispute over how Texas—s franchise tax sources receipts from sales of tangible personal property. Petitioner NuStar urged the court to adopt an "ultimate destination" or market-based test for sourcing sales receipts; the Texas Comptroller defended a decades-old place-of-delivery rule. Petitioner counsel argued the statute—s text and structure require looking to the buyer's ultimate destination and use of the goods rather than the location where title or possession momentarily changes hands. "This is a Texas franchise tax apportionment case," counsel said. "The question presented is whether the comptroller's rule, sourcing receipts…