Contingent Liability Insurance Definition - What does Contingent Liability Insurance mean? Contingent liability insurance is insurance protection against potential perils or obligations that may or may not come to be, depending on how a particular event turns out. Companies often purchase it to protect against the possibility that an event would result in the party owing a large sum of money.
Texas: Franchise Tax Is Not an Income Tax; Compact Election Not Allowed. In the latest decision addressing the availability of the Multistate Tax Compactâs three-factor apportionment election, a Texas appeals court ruled that the election was not allowed in computing Texas franchise (margin) tax liability.
With the exception of sole proprietorship businesses, just about all types of companies doing business in Texas must pay a franchise tax. Franchise taxes fall under the privilege tax category. Privilege taxes are assessed on businesses that are headquartered outside of Texas and conduct business within the state.