THE SUPREME COURT OF TEXAS DENIES THE COMPTROLLER’S PETITION FOR REVIEW IN BADGER TAVERN

April 1, 2019


Badger Tavern v. Hegar

The Texas Supreme Court has recently denied the Comptroller’s Petition for Review in Badger Tavern. In denying the Comptroller’s Petition for Review, the Supreme Court of Texas did not request a Response from Badger Tavern, represented by Doug Sigel, Rich Moore, and Roman Alexander.

The Comptroller’s failed argument focused on the following points:

  1. The court of appeals exceeded its appellate jurisdiction when it reviewed an order that Badger Tavern was not appealing;
  2. The court of appeals exceeded its jurisdiction when considering and ruling on the merits of an unpled claim;
  3. The court of appeals rendered an improper advisory opinion; and
  4. The court of appeals’ decision has serious negative consequences.

Badger Tavern is significant for taxpayers because it establishes that statements of Comptroller policy, specifically in the preamble of a promulgated Comptroller rule, is a “rule” and may be invalidated through an Administrative Procedure Act (“APA”) rule challenge.

For more information, contact:

Doug Sigel
Practice Group Leader, Sales & Use and Income Tax
512-459-6611
doug.sigel@ryanlawyers.com

Rich Moore
Associate, Sale & Use and Income Tax
512-459-6613
richard.moore@ryanlawyers.com