- Texas Supreme Court ruled on sales and use tax exemption for private prisons
- GEO Group, a Florida-based corporation, operates correctional facilities in the US
- Between 2011 and 2014, GEO did not pay taxes on supplies for Texas facilities
- Texas Comptroller demanded nearly USD 4 million in taxes from GEO
- GEO paid the amount and filed a lawsuit for a refund
- District Court ruled GEO is not tax-exempt as it is not a government agency
- Court of Appeals upheld the District Court’s decision
- Supreme Court of Texas confirmed GEO is not exempt from sales and use tax
- GEO failed to provide evidence to support its tax exemption claim
- Decision highlights complexity of US sales and use taxes in private prisons
- Taxable entities in this sector should consider the court’s arguments carefully
Source: vatabout.com
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.
