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Texas Court Invalidates Texas Comptroller Rule in Favor of Cities: Sales Tax Sourcing Victory

  • Texas Court overturns local sales tax sourcing rule
  • Victory for Texas cities, including Round Rock
  • Judge Crump invalidated portions of Texas Comptroller Rule 3.334
  • Ruling declared rule conflicted with Texas Tax Code
  • Lawsuit filed by multiple Texas cities against Texas Comptroller Glenn Hegar
  • Decision reinforces Legislature’s role in setting tax policy
  • Ruling safeguards public’s right to participate in rulemaking process
  • Lawsuit filed in 2021 after amendments to Rule 3.334
  • Amended rule reallocated sales tax revenue from sellers to buyers
  • Court found rule adoption violated APA requirements

Source: citybiz.co

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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