X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
OPINION

This suit involves the allocation of local sales tax revenue by the Texas Comptroller of Public Accounts. The Comptroller is responsible for collecting local sales tax from retailers, and then distributing the revenue to the appropriate local taxing jurisdictions. Appellees are numerous local taxing jurisdictions that had originally received allocations of local sales tax revenue attributable to certain furniture retailers’ sales, based on the locations of the retail stores in which the sales occurred. Beginning in 2006, the Comptroller notified appellees that a portion of that revenue would instead be allocated to another local taxing jurisdiction. This reallocation was based on the Comptroller’s determination that the sales were consummated for sales tax purposes in the city where the retailers’ warehouses are located. The Comptroller applied this determination both prospectively and retroactively to May 2002. The retroactive aspect of the Comptroller’s ruling requires the Comptroller to recoup tax revenues from appellees that have already been paid to them. Appellees filed suit against appellant Susan Combs, in her official capacity as Comptroller of Public Accounts for the State of Texas, asserting (1) claims under the Texas Constitution for violation of the due course of law and takings provisions, (2) claims under the Uniform Declaratory Judgments Act (UDJA) that the Comptroller had acted outside her authority in interpreting and applying the Texas Tax Code provisions that govern the location where a sale is consummated, and in applying a change in local sales tax allocation retroactively, and (3) a claim under the Administrative Procedure Act (APA) that the Comptroller’s rule allowing retrospective reallocation of local sales tax was not properly promulgated. The Comptroller filed a plea to the jurisdiction as to all claims. The district court denied the plea, and the Comptroller appeals.

We affirm the district court’s denial of the plea to the jurisdiction as to appellees’ claim under the UDJA that the Comptroller acted outside her authority in applying the tax code regarding where the specific sales at issue were consummated. We reverse the district court’s order as to the remainder of appellees’ UDJA claims, their constitutional claims, and their APA claim, and dismiss those claims for lack of subject-matter jurisdiction.

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
June 20, 2024
Atlanta, GA

The Daily Report is honoring those attorneys and judges who have made a remarkable difference in the legal profession.


Learn More
June 27, 2024
New York

Consulting Magazine identifies consultants that have the biggest impact on their clients, firms and the profession.


Learn More
July 11, 2024
New York, NY

The National Law Journal Elite Trial Lawyers recognizes U.S.-based law firms performing exemplary work on behalf of plaintiffs.


Learn More

Cicchiello & Cicchiello, LLP - Hartford Law Firm seeking to hire an Associate Attorney. We focus our practice primarily on Personal Inju...


Apply Now ›

The Princeton office of Epstein Becker & Green is seeking an associate to join its Litigation practice. Candidates should have a minim...


Apply Now ›

Summary Description: Greenbaum, Rowe, Smith & Davis seeks a Law Librarian to manage the Firm s information research services and library...


Apply Now ›
06/14/2024
New Jersey Law Journal

Professional Announcement


View Announcement ›
04/29/2024
The National Law Journal

Professional Announcement


View Announcement ›