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Newswest 9 | Midland, Texas | newswest9.com

Texas attorney general releases opinion on long-running local sales tax feud

The dispute centers around whether the City of Odessa should receive some sales tax funds from Ector County because of annexed businesses.
Attorney General Ken Paxton (Source: Twitter)

ECTOR COUNTY, Texas —

In an opinion issued Monday, Texas Attorney General Ken Paxton provided some guidance on a long-running dispute involving Ector County Assistance District sales tax revenue. 

The dispute began during the Odessa City Council race. It centers around whether the City of Odessa should receive some sales tax funds from Ector County. 

The city argues that because some businesses sit geographically in county limits, but have been annexed by the city to receive its services like police, sewage, trash and water, they should receive some county funding. The county feels the city should not.

A request was submitted for the attorney general to rule on several aspects of the issue. 

Paxton concluded in the county's favor, saying that the city is not entitled to sales tax revenue due to any annexations. 

Ector County Sheriff Mike Griffis spoke in support of the decision, saying he hopes it will help to unite county and city leadership. 

"This is confirmation of my present desire for Ector County and the City of Odessa to move forward as a community," Griffis said. "This can be a win-win for all of us." 

Paxton also ruled that the city is not guaranteed any funding for future annexations either.

RELATED: Still no solution in City of Odessa, Ector County tax feud