GEO Group Stuck With Texas Sales Tax Bill on Prison Supplies

GEO Group Inc. failed to convince a Texas appeals court it’s entitled to a refund of nearly $4 million for sales tax on purchases for the prisons it runs for the federal and state governments.

The Texas Seventh District Court of Appeals agreed with a state trial court that the purchases don’t fall under a state sales tax exemption for “items sold, leased, or rented to, or stored, used, or consumed by” the federal government or the state of Texas.

GEO isn’t controlled by the governments and has an independent role in managing its property and operations, the ...