2025 Texas Statutes
Tax Code
Title 3 - Local Taxation
Subtitle C - Local Sales and Use Taxes
Chapter 321 - Municipal Sales and Use Tax Act
Subchapter D. Administration of Taxes
Section 321.310. Disapproval of Municipal Suit
Sec. 321.310. DISAPPROVAL OF MUNICIPAL SUIT. (a) The comptroller or the attorney general may disapprove of the institution of a suit by a municipality under Section 321.309(b) if:
(1) negotiations between the state and the taxpayer are being conducted for the purpose of the collection of delinquent taxes owed to the state and the municipality seeking to bring suit;
(2) the taxpayer owes substantial taxes to the state and there is a reasonable possibility that the taxpayer may be unable to pay the total amount owed;
(3) the state will bring suit against the taxpayer for all taxes due under Chapter 151 and this chapter; or
(4) the suit involves a critical legal question relating to the interpretation of state law or a provision of the Texas or United States constitution in which the state has an overriding interest.
(b) A notice of disapproval to a municipality must be in writing and give the reason for the determination by the comptroller or attorney general.
(c) A disapproval is final and not subject to review.
(d) Not earlier than one year after the date of a disapproval of the institution of a municipal collection suit, the municipality may again proceed as provided by Section 321.309(b) even though the liability of the taxpayer includes taxes for which the municipality has previously given notice and the comptroller or attorney general has disapproved of the suit.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987.
