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Lamar County officials warn SSUT lawsuit could jeopardize hundreds of thousands in local revenue
Summary
Commissioners discussed a pending lawsuit by several city mayors challenging SSUT collection and warned that Lamar County’s annual SSUT receipts—cited as roughly $533,000—could be reduced or escrowed if courts intervene, possibly affecting budgeted raises and services.
County commissioners spent a substantial portion of the Oct. 6 meeting discussing the risk presented by a lawsuit challenging the Simplified Seller Use Tax (SSUT), a statewide mechanism for collecting remote sales tax.
An unidentified commissioner (S3) described the county’s experience with SSUT, saying the county’s portion grew from about $80,000 the first year SSUT was implemented to roughly $533,000 annually, and he warned that an injunction or other court action could require the state to escrow funds or suspend disbursements. "It went from about 80,000 the first year... and it's up to $533,000 a year now annually," the commissioner said.
Commissioners explained SSUT allocation in the meeting: the state receives 25% to the general fund and 25% to the education trust fund, while the remaining 50% is divided between municipalities and counties (60% municipalities, 40% counties). Speakers said the county receives only the county share of its allocation and that municipalities overall receive a larger proportion of SSUT distributions on a per-population basis.
The board noted a lawsuit filed by some of the 'Big 10' mayors opposing aspects of SSUT collection and suggested the litigation's outcome is uncertain. Commissioners said they are preparing in case collections are interrupted, noting several recent local budget decisions (including raises and budget allocations) were made with SSUT revenue factored into projections. "If it ain't there anymore... they escrowed that money," an unidentified commissioner said when describing other jurisdictions' responses.
Commissioners did not take formal action related to SSUT at the meeting but urged coordination with mayors and county representatives to monitor the lawsuit and explore responses. The county will continue with adopted budgets and the personnel changes approved at the meeting while noting the contingency should the legal landscape change.
