GEO Group Ineligible for $4 Million Sales Tax Refund, Texas Says

GEO Group Inc. doesn’t qualify for a refund of nearly $4 million for sales tax on purchases for the prisons it runs because it isn’t an exempt instrumentality or agency of the government, the state told the Texas Supreme Court.

While Texas law exempts “arms of the government” from sales tax, GEO Group is an independent contractor that can be taxed, Texas said, requesting the justices deny GEO’s petition for review or affirm a lower court judgment denying the refund. While the company is obligated to meet certain conditions set by the state and federal governments, GEO Group oversees the ...