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BULLOCK v. SAGE ENERGY CO.

No. 3-86-123-CV.

728 S.W.2d 465 (1987)

Bob BULLOCK, Comptroller of Public Accounts of the State of Texas, et al., Appellants, v. SAGE ENERGY COMPANY, Appellee.

Court of Appeals of Texas, Austin.

Rehearing Denied May 13, 1987.

Attorney(s) appearing for the Case

Jim Mattox, Atty. Gen., Harriet D. Burke, Asst. Atty. Gen., Austin, for Bob Bullock, Comptroller of Public Accounts of The State of Tex.

David C. Duggins, L.G. "Skip" Smith, Clark, Thomas, Winters & Newton, Austin, for Sage Energy Co.

Before SHANNON, C.J., and BRADY and ABOUSSIE, JJ.

SHANNON, Chief Justice.

Sage Energy Company filed suit in the district court of Travis County for refund of $328,667.50 in franchise taxes paid to the Comptroller of Public Accounts. In its suit Sage attacked a rule of the Comptroller relating to the preparation and contents of the franchise tax report. Sage asserted that the rule, as construed and applied by the Comptroller, requires the assessment of its franchise tax on the basis of capitalized intangible drilling...

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