Texas Insider Report: AUSTIN, Texas– Attorney General Ken Paxton today announced that his office dismissed a lawsuit against Brownsville after the city formally repealed its illegal sales tax on plastic bags. Brownsville previously charged residents a one dollar “environmental fee” for buying plastic bags at businesses or grocery stores, in violation of state laws within the Texas Tax Code and Health and Safety Code.
“I’m pleased that the city of Brownsville agreed to stop taxing its citizens through an unlawful bag fee,” Attorney General Paxton said. “Cities and municipalities in Texas are obligated to follow the rule of law. And in this case, a law passed by the Legislature clearly prohibits a sales tax on bags.”
According to a published report, shoppers in the city of Brownsville have been paying nearly $71,000 per month in illegal plastic bag fees since the “environmental fee” was imposed. Texas Health and Safety Code 361.0961(a)(3) states that “a local government or other political subdivision may not adopt an ordinance, rule or regulation to assess a fee or deposit on the sale or use of a container or package.”
To view a copy of the settlement, click here.