Ezel / Tax Rulings / TX
TX 9004L0997E01 Sales and/or Use Tax (State,Local,MTA) 1990-04-16

Could the Texas Comptroller pay city and county sales-tax refunds promised through a local enterprise-zone program?

Short answer: No. The Comptroller lacked authority to pay those local refunds. The person who paid the tax had to file separate claims directly with the city and county that created the refund program, and those local governments paid the beneficiary under their written agreements.

Apply this to your situation

This page answers the general question as of 1990. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1990
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The Comptroller said it was not authorized to pay the requested city and county sales-and-use-tax refunds under the Texas Enterprise Zone Act.

The person who paid the tax had to claim the refund directly from each city or county that established the local refund program. The governing written agreement had to include an expiration date and documentation requirements, and the local government granting the refund paid the beneficiary directly.

The requester was told to file separate claims with the redacted county and city; the Comptroller returned the claim and supporting documents.

Common questions

Could the Comptroller issue the local refund? No.

Where did the taxpayer file? Separately with the city and county that established the refund programs.

Who paid an approved refund? The municipality or county granting it.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TX 78774

April 16, 1990

Dear *:

Thank you for requesting the county and city sales tax enterprise
zone refunds on behalf of ***.

I regret to inform you that after researching the provisions for
the refunds, we have concluded that we are not authorized to make
the refunds you ask about. Those claims are made directly to the
city or county that establishes a program to refund its local
sales and use tax by the person who paid the tax. The local sales
tax reimbursement provided for in the Texas Enterprise Zone Act
requires that the municipality or county granting the refund shall
pay the amount refunded directly to the person entitled to the refund.

Vernon's Ann. Civ. St. art. 5190.7, Sec. 12 provides in part:

(e) Any agreement to refund local sales and use taxes under
this section must be in writing, contain an expiration date,
and require the beneficiary to provide the documentation
necessary to support a refund claim to the municipality or
county granting the refund. The municipality or county
granting a refund shall make the refund directly to the
beneficiary in the manner set out in the agreement.

** should file separate claims with ** County and The
City of ***. We are returning the claim and supporting
documentation to you.

If you have any questions or need more information please call our
toll-free number 1-800-531-5441; the regular number is (512) 463-
4861. You may write me at the Taxability Section of Legal Services
Division.

Sincerely,
Tom Soto
Taxability Section
Legal Service Division

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