Texas Supreme Court Schedules Oral Arguments in Southwest Royalties Case

Jan 25, 2016, 10:26 ET from Ryan

DALLAS, Jan. 25, 2016 /PRNewswire/ -- In a significant tax development for the Texas oil and gas industry, the Texas Supreme Court has agreed to review the appellate court decision in Southwest Royalties v. Glenn Hegar, Comptroller of Public Accounts, setting oral arguments for March 8, 2016. The action sends an important signal of the high Court's interest in the case, which addresses the taxability of oil and gas production equipment used "below ground." 

Ryan, LLC, the largest transaction tax practice in North America, serves as tax advisor to Southwest Royalties and played a key role in developing the case.

"We are encouraged by the Court's decision to hear this case. It has long been the Firm's contention that below-ground equipment used in the processing of oil and gas qualifies for the Texas manufacturing exemption," said G. Brint Ryan, Chairman and CEO of Ryan.

The case was tried in 2012 before Travis County Judge John Dietz, who initially announced from the bench at the conclusion of oral arguments that he was inclined to agree with the taxpayer that "below-ground" equipment used in or during the actual processing of oil and gas qualified for the manufacturing exemption under Texas Tax Code Sec. 151.318. However, Dietz subsequently reversed himself in his written judgment, and the Texas Court of Appeals, Third District, upheld the decision on August 13, 2014. 

About Ryan
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a three-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.

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