State and local taxing authorities strive to increase their revenues by aggressively administering existing tax law, raising rates, imposing new taxes and continually seeking to expand the limits of their jurisdiction. Our tax lawyers have extensive experience in advising and representing clients on state and local tax matters, whether the issues arise in states where our offices are located, or elsewhere in the United States.

Baker Botts tax lawyers are experienced in business planning and structuring transactions to minimize state and local taxes. We have successfully obtained numerous advance determination letters in many states and from various taxing jurisdictions which provide for favorable tax treatment with respect to these transactions.

Our state and local tax lawyers represent clients in the audit process, refund claims and verification, administrative redeterminations, managed audits and litigation. We often find that state and local tax controversies can be resolved most advantageously at the audit or administrative level. At this level, our controversy practice emphasizes negotiated settlements. We bring to the settlement process a thorough knowledge of the applicable law and administrative policy, as well as working relationships with key decision makers. Settlement is sometimes facilitated when the state tax agency is aware that a taxpayer's representative can and will litigate unresolved issues. Although we emphasize negotiated settlements, Baker Botts has extensive tax litigation experience in district and appellate courts in Texas and other states. Our tax lawyers also counsel clients involved in federal constitutional challenges to state tax statutes.