Tex. Tax Code Section 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 (Suit for Tax Collection)(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 (Limited Sales, Excise, and Use Tax) 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 (Suit for Tax Collection)(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.

Source: Section 321.310 — Disapproval of Municipal Suit, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­321.­htm#321.­310 (accessed Jun. 5, 2024).

321.001
Short Title 321.002
Definitions 321.003
Other Portions of Tax Applicable 321.004
References to Sales or Use Tax 321.101
Tax Authorized 321.102
Effective Dates: New Tax, Tax Repeal, Boundary Change 321.103
Sales Tax 321.104
Use Tax 321.105
Residential Use of Gas and Electricity 321.106
Fire Control District Tax 321.107
Administration of Local Sales and Use Taxes Imposed by Other Governmental Entities 321.108
Municipal Crime Control and Prevention District Tax 321.201
Computation of Sales Taxes 321.202
Method of Reporting: Retailers Having Sales Below Taxable Amount 321.203
Consummation of Sale 321.204
Computation of Use Tax 321.205
Use Tax: Municipality in Which Use Occurs 321.206
Incidence of Additional Municipal Sales and Use Tax 321.207
Local Tax Inapplicable When No State Tax 321.208
State Exemptions Applicable 321.209
Transition Exemption: General Purpose Sales and Use Tax 321.210
Telecommunications Exemption 321.301
Comptroller to Collect and Administer Taxes 321.302
Comptroller’s Reporting Duties 321.303
Sales Tax Permits and Exemption and Resale Certificates 321.304
Discounts for Prepayment and Tax Collection 321.305
Penalties 321.306
Comptroller’s Rules 321.307
Delinquent Taxes: Limitations 321.308
Seizure and Sale of Property 321.309
Suit for Tax Collection 321.310
Disapproval of Municipal Suit 321.311
Judgments in Municipal Suit 321.312
Retention of Certain Municipal Sales Taxes 321.401
Calling of Election 321.402
Deadlines After Petition 321.403
Time of Election 321.404
Ballot Wording 321.405
Official Results of Election 321.406
Frequency of Election 321.407
Election Contest: Notice 321.408
Election Contest: Delayed Effective Date 321.409
Combined Municipal Sales Tax Ballot Propositions 321.501
Trust Account 321.502
Distribution of Trust Funds 321.503
State’s Share 321.504
Amounts Retained in Trust Account 321.505
Interest on Trust Account 321.506
Use of Tax Revenue by Municipality 321.507
Use of Additional Municipal Sales and Use Tax 321.508
Pledge of Tax Revenue 321.509
Tax Powers of Municipality Not Limited 321.510
Reallocation of Municipal or Local Governmental Entity Tax Revenue 321.1025
Annexation to Certain Regional Transportation Authorities 321.1045
Imposition of Sales and Use Tax in Certain Federal Military Installations 321.1055
Imposition of Fire Control or Crime Control District Tax on the Residential Use of Gas and Electricity 321.2091
Transition Exemption: Additional Municipal Sales and Use Tax 321.3022
Tax Information 321.3025
Disposition of Amount Erroneously Collected 321.5025
Distribution of Trust Funds to Defunding Municipality
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 321.310’s source at texas​.gov