In Titan Transportation, L.P. v. Combs, the Texas Third Court of Appeals held that Titan, an aggregate hauler, was entitled to reduce its revenue for the payments it made to its independent haulers to ship aggregate to construction sites.  Martens, Todd & Leonard handled both the trial and appeal of this case. Titan is in the business of hauling and depositing aggregate, which is construction material made of rock, gravel, dirt, sand, or fines.  The aggregate is sold by quarries, not Titan.  Titan hauls the aggregate to and deposits it at construction sites for roads or foundations.  Titan pays its independent haulers to provide this service.  Titan sought to remove these payments from its revenue on its Texas franchise tax reports.  The Texas Comptroller denied Titan's claim, but the Third Court of Appeals held otherwise, rejecting every argument the Comptroller made. As a result of this decision, CPAs and businesses that owe the Texas franchise tax should review their prior Texas franchise tax reports to determine whether they overpaid and are entitled to refunds. Martens, Todd, & Leonard is analyzing the Titan decision, along with Combs v. Newpark Resources, Inc., which the firm argued last year, to determine their potential impact on other Texas franchise tax reporting issues and effect on potential Texas franchise tax refund claims.  They will publish the analysis shortly on their firm's website.