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A recent Dallas Court of Appeals cast that addresses the application of Section 25.25 (c) (3) to interstate allocation cases. In Corsicana Co. v DCAD, the court confirmed that a challenge based on interstate allocation could not be brought as a challenge of property that "does not exist in the form or at the location described in the appraisal roll."

While the Dallas Courts have consistently taken a very narrow view of 25.25 motions, other courts (namely Houston) have allowed very broad challenges under that provision. With this case, along with Titanium Metals and the recent Bunn v Bexar CAD case, it will become much more difficult to argue any change to "value" based upon a 25.25 claim, unless it is truly a duplicate account, a clerical error or there is absolutely no property at the location.

That being said, I believe that interstate allocation issues have the potential of being raised outside the bounds of the Texas Tax Code, since they are based on United States commerce clause protection. There is case law that indicates that tax challenges based on constitutional concerns cannot be limited by the Tax Code.

Submitted by:

Jason C. Marshall
Winstead Sechrest & Minick
5400 Renaissance Tower
1201 Elm Street
Dallas, TX 75270

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