Thread: Manifiestos: Gaming the system Tax refunds total more than $

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Manifiestos: Gaming the system
Tax refunds total more than $500 million in 5 years
By David Crowder



EL PASO-As Texas faces a potential $20-billion budget deficit, one place legislators may look for extra cash is the state program to refund sales taxes collected on goods purchased for export.
The program is the only one of its kind in the country, and investigators believe there is widespread potential for abuse.
Under the program, buyers can declare goods for export, keep the goods here and collect the rebate.
The issue has become timely as thousands of Mexicans move to El Paso, needing to furnish homes and businesses.
According to data from the Texas Comptroller’s Office, Texas merchants returned $507 million in sales tax to Mexicans from 2004 to 2009. Those rebates were on purchases of $6.1 billion.
Questions about the sales tax rebate program have come up at two legislative meetings on the budget so far this year.
“The border is pretty distressed, and so far the legislature has been willing to let manifiestos continue,â€

In 2002, an investigation by the comptroller’s office found manifiestos fraud to be rampant from El Paso to Brownsville.


[b]“The balance that has been discussed is, you know, you’re going to have some fraud in the program,â€