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Coalition appealing to Texas Supreme Court on sales tax refunds

Brent Money

GREENVILLE - Greenville City Attorney Brent Money plans to file a brief with the Texas Supreme Court concerning the recent judicially created sales tax exemption.

Submitted to KETR:

Money intends to notify the State’s high court that the City will file a brief on behalf of the Texas Municipal League (TML), Texas City Attorney’s Association (TCAA) and the City of Greenville within the next 30 days to represent the interests of Texas cities and counties in two lawsuits before the court, Case Numbers 11-0283 and 11-0652; Susan Combs, Comptroller of Public Accounts of the State of Texas and Greg Abbott, Attorney General of the State of Texas vs. Health Care Service Corporation.

These recent court opinions by the Austin Court of Appeals judicially created a new sales tax exemption that the State Comptroller’s Office says will cost the State of Texas over $600 million in sales tax refunds and decrease revenue by approximately $75 million annually. The State Comptroller, through the Attorney General, has appealed the cases to the Texas Supreme Court.

Although the City of Greenville is not a party to these lawsuits, the impact of the new judicially created sales tax exemption would require the City to refund over $2.7 million in sales tax revenue collected over the past decade, and decrease future revenues by over $300,000 per year, based on information received from the State Comptroller’s office.

The coalition being formed by the City, TML and TCAA will serve to represent the interests of these entities facing a substantial and potentially devastating financial impact to their ability to provide public safety, public infrastructure, and community services if these rulings are upheld.

Money’s letter to the Texas Supreme Court is available at the city's website.