GRAPHIC PACKAGING CORP. v. HEGAR

No. 15-0669.

538 S.W.3d 89 (2017)

GRAPHIC PACKAGING CORPORATION, Petitioner, v. Glenn HEGAR, Comptroller of Public Accounts of the State of Texas and Ken Paxton, Attorney General of the State of Texas, Respondents.

Supreme Court of Texas.

Opinion Delivered: December 22, 2017.


Attorney(s) appearing for the Case

Amanda Garrett Taylor , Beck Redden LLP, Dana Livingston , Rachel A. Ekery , Wallace B. Jefferson , Alexander Dubose Jefferson & Townsend LLP, Danielle V. Ahlrich , Martens Todd Leonard & Ahlrich, James F. Martens , Lacy L. Leonard , Martens Todd Leonard Taylor & Ahlrich, Austin, TX, Amy L. Silverstein , Edwin P. Antolin , Silverstein & Pomerantz, LLP, San Francisco, CA, for Petitioner.

Rance L. Craft , Office of the Attorney General, Cynthia Ann Morales , Office of the Attorney General, Fin. Litigation, Tax & Charitable Trusts Div., Jeffrey C. Mateer , First Assistant Attorney General, Kevin D. Van Oort , Deputy Chief-Financial & Tax Litigation Div., Scott A. Keller , Office of the Attorney General, Solicitor General, W. Kenneth Paxton Jr. , Attorney General of Texas Office of the Attorney General, Warren Kenneth Paxton Jr. , Austin, TX, for Respondents.

David Edward Cowling , Thomas Fenton Allen Jr. , Jones Day, Dallas, TX, for Amicus Curiae Council on State Taxation.

Doug Sigel , Jeremy Gove , Mark W. Eidman , Ryan Law Firm LLP, Austin, TX, for Amicus Curiae EMC Corporation.

Don W. Cruse Jr. , Law Office of Don Cruse, Austin, TX, Sheldon H. Laskin , Multistate Tax Commission, Washington, DC, for Amicus Curiae Multistate Tax Commission.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Salem, OR, Jahna Lindemuth , Attorney General of Alaska, Anchorage, AK, for Amicus Curiae State of Alaska.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Salem, OR, Xavier Becerra , Attorney General of California, San Francisco, CA, for Amicus Curiae State of California.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Salem, OR, Cynthia Coffman , Attorney General of Colorado, Denver, CO, for Amicus Curiae State of Colorado.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Salem, OR, Douglas S. Chin , Attorney General of Hawaii, Honolulu, HI, for Amicus Curiae State of Hawaii.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Salem, OR, Lawrence G. Wasden , Attorney General of Idaho, Boise, ID, for Amicus Curiae State of Idaho.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Salem, OR, Lori Swanson , Attorney General of Minnesota, St. Paul, MN, for Amicus Curiae State of Minnesota.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Salem, OR, Timothy C. Fox , Attorney General of Montana, Helena, MT, for Amicus Curiae State of Montana.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Salem, OR, Hector Balderas , Attorney General of New Mexico, Santa Fe, NM, for Amicus Curiae State of New Mexico.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Salem, OR, Wayne Stenehjem , Attorney General of North Dakota, Bismarck, ND, for Amicus Curiae State of North Dakota.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Salem, OR, Mike Hunter , Attorney General of Oklahoma, Oklahoma City, OK, for Amicus Curiae State of Oklahoma.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Ellen F. Rosenblum , Attorney General of Oregon, Salem, OR, Ramon G. Viada III , Viada & Strayer, The Woodlands, TX, for Amicus Curiae State of Oregon.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Salem, OR, Sean D. Reyes , Attorney General of Utah, Salt Lake City, UT, for Amicus Curiae State of Utah.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Salem, OR, Robert W. Ferguson , Attorney General of Washington, Olympia, WA, for Amicus Curiae State of Washington.

Darren Weirnick , Senior Assistant Attorney, Benjamin Gutman , Oregon Solicitor General, Oregon Dept. of Justice, Salem, OR, Karl A. Racine , Attorney General for the District of Columbia, Washington, DC, for Amicus Curiae The District of Columbia.


A taxpayer that conducts business in multiple states must apportion its business revenue among the states in which it does business. For the Texas franchise tax, section 171.106 of the Tax Code provides for such apportionment under a single-factor formula, which compares the taxpayer's gross receipts...

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