I have previously written about the new Franchise Tax that Texas implemented in 2008. I paid the tax that was due in 2009. I get a bill from the State Comptroller, Susan Combs, this July that told me to pay $4,300 more which included almost $800 in penalties and interest. A letter stated that I need to pay that amount and could then protest the charge to try to get my money back. They stated that their research indicates that we are not a retail garden center and we need to provide documentation to prove that we are.  I immediately sent them a check and then had to ponder what documentation would prove that we are indeed a retail garden center.

I decided to send them 3 things. #1--I sent them a packet of invoices from my suppliers from 2008. #2--I sent a copy of my current Nursery/Floral certificate from the Texas Dept. of Agriculture. The third document I sent was my Sales and Use Tax Permit issued by Susan Combs from the State Comptrollers Office that states that we are a retail garden center since 1973.  (See below).

I really feel odd sending them a document that they issued to me.  Crossing my fingers because if they don’t believe my evidence then over the next ten years this tax would cost me 80-100 thousand dollars more than it should. I wish I had more confidence in this bureaucracy... or any bureaucracy.

8/18/2010 Update--Comptrollers Office called me today. Someone sent them a link to this blog and they clarified a few issues. Still more work to do.  The internet is a powerful thing. 

10/25/2010 Update--Everything resolved. They agreed that we are indeed a retail garden center and sent our money back.