The Herald Banner, Greenville, TX

Local News

October 24, 2013

City gets extension to pay off sales taxes

GREENVILLE — City of Greenville officials said it took some arm twisting by county and state government officials, but the city will be allowed to take an extra decade to repay millions in sales and use tax rebates.

The Greenville City Council voted Tuesday to approve a plan to pay back the more than $2.7 million it owes to the Texas Comptroller’s Office over a 40 year period.

The original proposal was to pay the money — which the Texas Supreme Court ruled the city owes to the State of Texas — over 30 years.

City Attorney Daniel W. Ray said the city appealed to the Comptroller’s Office, asking the money to be repaid over the longer term.

“They said under no uncertain terms they would not approve anything over 30 years,” Ray said.

County Judge John Horn heard about the problem and then contacted the office of State Representative Dan Flynn, who in turn placed a call to the State Comptroller.

“Within a matter of a few hours, the comptroller had agreed to a term of 40 years,” Ray said.

Council member Dan Perkins said the council owed Flynn a call of thanks, while Mayor Steve Reid said Horn also should receive credit.

“He was the one who rattled the cage,” Reid said.

The Texas Supreme Court ruled the City of Greenville was one of several cities in the state who owe sales and use taxes, which were paid in error by the Texas Comptroller.

The city had proposed repaying the sales taxes back over a 30 year period, at $7,707.06 per month or $92,484.72 per year, with the payments to begin December 1. The city will now pay back the funds over 40 years, at $5,780 per month or $69,363.54 per yea, with the payments to start next April.

Sales taxes are one of the two main sources of revenue, along with property taxes, which feed the City of Greenville’s general fund.

A rededication of a percentage of the sales tax revenue goes toward the 4A economic development corporation.

In March 2012, the Comptroller’s Office notified the City of Greenville that it would postpone collection of more than $2.7 million in sales tax revenue.

The state agency had previously indicated the city would be required to refund the money, based on a sales tax exemption expanded significantly by the Austin Court of Appeals.

1
Text Only
Local News
  • Vaderrobot.jpg Dallas champions, Robowranglers look forward

    Practicing with the best hones skills and keeps members of Greenville High School Robowranglers on point, according to Director of Robotics Adrienne Emerson.
    The Robowranglers are preparing their robot “Vader” for the FIRST World Championships in St. Louis on April 23-26.

    April 18, 2014 1 Photo

  • Texas drougnt as of 4-17-2014.jpg Wet Easter Sunday possible

    It may be a wet Easter holiday in North Texas, as thunderstorms are again in the forecast for the weekend.

    April 17, 2014 1 Photo

  • Sheriff's Office Wanted fugitive captured in Ellis County

    April 17, 2014 1 Photo

  • Band1.jpg Roaring with pride

    The Greenville High School Lion Pride Band performs well under pressure, according to GHS band director Joel Weisburg

    April 17, 2014 1 Photo

  • Royce Tawater.jpg Shooting suspect changes mind on guilty pleas

    On second thought, a local man will leave it up to a jury to decide whether he is guilty of multiple charges in connection with two shootings in Greenville last summer.

    April 17, 2014 1 Photo

  • Easter Eggstravaganza stork photo.jpg A hunting we will go

    There will be lots of brightly colored eggs hidden in the grasses across Hunt County this weekend, and plenty of opportunities for children to find them.

    April 17, 2014 1 Photo

  • GEUS Operations Center.jpg Saying thanks to police

    The board of the local electric utility system intends to take time tonight to thank officers with the Greenville Police Department for catching suspects who allegedly broke into the company’s headquarters last month.

    April 17, 2014 1 Photo

  • Field.jpg GISD trustees approve replacing track, turf

    When the Greenville High School football team takes the field in August, they will be marching out onto new turf.

    April 16, 2014 1 Photo

  • Royce Tawater.jpg Guilty pleas expected in July 2013 shootings

    A  Greenville man, sentenced to state prison earlier this year on a weapons charge, is scheduled to plead guilty today to multiple counts involving two different shootings in July 2013.

    April 16, 2014 1 Photo

  • GPD stock photo.jpg Guilty plea given in child injury case

    A local woman has pleaded guilty to seriously injuring a child in Greenville in February of last year.

    April 16, 2014 1 Photo

Featured Ads
Photos


See more photos and purchase prints here.

Poll

What's your favorite spring high school sport?

Swimming and diving
Wrestling
Basketball
Soccer
Tennis
Golf
Track and Field
Softball
Baseball
     View Results
Facebook
AP Video
Must Read
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Reader's Choice