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State agency to suspend collection of sales tax refund

GREENVILLE - The State Comptroller’s Office has contacted City of Greenville officials to confirm that it will postpone collection of over $2.7 million in sales tax revenue that it had previously notified the City would be required to refund under a sales tax exemption that was recently expanded significantly by the Austin Court of Appeals. 

The Texas Supreme Court has agreed to hear the two lawsuits between the State Comptroller’s Office and Health Care Services Corporation. City Attorney Brent Money recently notified the Texas Supreme 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 to represent the interests of Texas cities and counties in the two lawsuits.

 

The City of Greenville extends its sincere appreciation to State Representative Dan Flynn, whose actions on our behalf prompted the postponement by the State Comptroller’s Office. The representative from the State Comptroller’s Office indicated that this was the first time they have ever suspended collection of a sales tax refund. City Manager Steven Alexander and City Attorney Brent Money worked with Representative Flynn and began forming a coalition of the City of Greenville, Texas Municipal League and Texas City Attorney’s Association to address this issue that could cost the State of Texas over $600 million in sales tax refunds and decrease revenue by approximately $75 million annually.

 

Money said, “We are hopeful that the Texas Supreme Court will overrule the Austin Court’s judicially-created exemption by strictly interpreting the Tax Code, which would make any repayment unnecessary.”