May a taxpayer use the three-factor apportionment formula permitted by the Multistate Tax Compact to apportion its margin under the revised Texas franchise tax?
No. The revised Texas franchise tax specifically provides for a single-factor apportionment formula based on gross receipts in TTC 171.105. The apportionment provision in TTC Chapter 141, related to the Multistate Tax Compact (MTC), does not apply to the revised Texas franchise tax and entities may not elect to use the MTC’s three-factor apportionment formula in lieu of the formula specified in Texas Tax Code Chapter 171.
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