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Texas Court of Appeals rules costs of installation not includible in cost of goods sold deduction

The Texas Court of Appeals, Third District recently determined that a taxpayer was not entitled to include labor costs incurred as part of repair work to install automotive parts on customer-owned vehicles in its Texas Franchise Tax (TFT) cost of goods sold (COGS) deduction. Further, the Court found that the District Court which had previously decided the case did not have jurisdiction to consider a related Uniform Declaratory Judgments Act claim, including an award of attorney fees.