Texas – Town of Boone Sues Watauga County Over Sales Tax Distribution

One threat, three illegal backroom agreements, seven years, and more than $16 million in lost revenue to date. These are the allegations the Town of Boone outlines in a lawsuit filed Feb. 20 in Watauga County Superior Court. The case, Town of Boone v. Watauga County, accuses the county of creating an “illegal sales tax distribution scheme” that puts profit over public safety and welfare. 

Beginning in 2013, the alleged scheme stems from a decision by county commissioners to change how sales tax revenue is distributed, switching from a per capita to an ad valorem method. 

Distribution by a per capita method divides the sales tax between a county and its municipalities based on population. Ad valorem distribution concerns taxed property, allowing the county to distribute sales tax revenue based on a municipality’s property values.

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by adam zebzda
March 8, 2020