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Tesla CEO Elon Musk is reportedly considering setting up shop in Texas following a dispute with California over coronavirus-related health protections that required his plant to shutter – which could have some interesting implications on the company’s tax obligations. Auto website Elecktrek reported Friday that Musk has chosen a site near Austin as the location for Tesla’s next Gigafactory, citing a source familiar with the matter. While California’s corporate income tax sits at a flat rate of 8.84 percent, Texas does not have a corporate income tax. However, the Lone Star State does have a margin tax that affects businesses. The Texas franchise tax has a rate of .75 percent of the taxable margin (.375 percent for retail and wholesale), which is equal to the least of 70 percent of total revenue, 100 percent of total revenue minus cost of goods sold, 100 percent of total revenue minus compensation or total revenue minus $1 million. The Tax Foundation ranked Texas 13th in terms of overall business tax climate in 2020, while California came in at 48th.