The City of Greenville has repeatedly reported receiving unprecedented amounts of sales tax rebate revenue in accounts issued monthly from the Texas Comptroller’s Office.

Unfortunately, the remarkable totals appear to have been the result of the state agency sending Greenville too much money.

For the third time in just over a decade. the city and the Texas Comptroller have agreed on a repayment plan.

The Greenville City Council is scheduled to conduct a public hearing prior to a vote on approving the latest agreement during today’s regular agenda, starting at 6 p.m. in the Municipal Building, 2821 Washington Street. A work session is also scheduled starting at 5 p.m.

The Hunt County Commissioners Court is also scheduled today to consider a similar repayment plan with the Comptroller’s Office.

In a memo to the Council, Finance Director GP Ippolito said a recent letter from the Texas Comptroller of Public Accounts notified the City of Greenville that it was previously overpaid a net amount of one refund claim and one field audit.

“The Texas state auditors have reviewed and confirmed the amounts as valid based on exemptions allowed under local sales tax statues and documentation provided by the taxpayer,” he said.

Greenville was ordered to repay a total amount of $1.3 million. “The amount owed to the Comptroller is in addition to current payback arrangements, with an outstanding balance of $3,570,542.31 as of the February 2023 allocation … which will bring the new total to $4,877,357.59”, Ippolito said.

The city and the comptroller have agreed on a new payback arrangement.

“This new payback arrangement, on combination with the prior existing payback arrangements, will be as follows: $14,841.30 through September 2023, $24,552.30 from October 2023 through January 2028, $18,910.52 for February 2028, $16,151.30 from March 2028 through April 2034, $16,220.58 for May 2034, and then will decrease to $5,780.30 from June 2034 through March 2054,” Ippolito said. “The other options, not recommended by City Staff, would be to either pay the amount in full via one payment or to apply all future monthly collections to the overpaid amount until the amount has been repaid.”

The Texas Supreme Court ruled in 2012 that the City of Greenville was one of several cities in the state who owed sales and use taxes, which were paid to them in error by the Texas Comptroller of Public Accounts.

The Council voted in October 2013 to approve a plan to pay back the more than $2.7 million over a 40-year period, at $5,780 per month or $69,363.54 per year, with the payments starting in April 2014.

The Comptroller’s Office sent the City of Greenville a notice Sept. 22, 2015, indicating the city owed an additional $652,000 which the Comptroller overpaid to the city.