Exploring Implementation Issues with the 2006 Revised Franchise Tax: Financing Texas Schools




Scanio, Joseph

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Purpose: In 2006, the Texas franchise tax was revised. Shortly after the first filing date, problems in the implementation process resulted in serious backlogs. This study uses three working hypotheses (effective strategy, external factors, and agency issues) to explore the implementation of the revised franchise tax. Method: This case study used structured interviews with Comptroller employees and document analysis to test the hypotheses. Eight employees, who worked closely with the implementation of the 2006 revised franchise tax, were interviewed. In addition, documents used to communicate policy change with taxpayers were examined. Findings: The results of the interviews showed limited support for each of the three working hypotheses. The implementation process suffered from a lack of clearly stated goals and employees did not receive enough training. One area where implementation flourished was in communication of tax changes to the taxpayer.


An Applied Research Project Submitted to the Department of Political Science, Texas State University-San Marcos, in Partial Fulfillment for the Requirements for the Degree of Masters of Public Administration, May 2010.


franchise tax, privilege tax, House bill 3, Texas comptroller, implementation, revised tax, Public Administration


Scanio, J. (2010). Exploring implementation issues with the 2006 revised franchise tax: Financing Texas schools. Masters of Public Administration, Texas State University, San Marcos, Texas.


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