General Dynamics Corp. v. Sharp
General Dynamics Corporation appealed a summary judgment concerning a tax-protest suit against the Texas Comptroller. The core issues were the constitutionality of the earned surplus portion of the amended Texas franchise tax, specifically its retroactivity, and the validity of Texas’ single-factor method for apportioning the franchise tax base. General Dynamics argued the tax amendment was a new corporate income tax that retroactively impaired vested rights and that the single-factor apportionment led to an unconstitutionally high tax burden. The court affirmed the trial court's judgment, holding that the franchise tax amendment operated prospectively and did not impair vested rights, and that the disparity caused by the single-factor apportionment method was insufficient to render it unconstitutional under the Commerce and Due Process Clauses.