“The consequences displaced onto ordinary citizens are staggering. If these names were to follow the law established in the Texas Tax Code and pay all outstanding debts they are liable for, Texas property owners would have significantly lower property taxes, if any at all.”

BREAKING: FORT BEND COUNTY, TX– State Rep. Jacey Jetton (HD 26-R) has allegedly committed tax evasion through at least five corporations on which he is listed as the registered agent, director or officer, totaling thousands of dollars in delinquent franchise taxes, fees, penalties and interest to the State of Texas.

“We the People” of the State of Texas ordained and established its constitution for adoption on February 15, 1876. Section 2 of the Texas Constitution’s Bill of Rights reads as follows;

“All political power is inherent in the people, and all free governments are founded on their authority, and instituted for their benefit.”

Almost 150 years ago, the Texas Constitution established the structure and the function of the government of Texas, including the scope and limitations of each of its governing bodies. It also specified the basic rights of its citizens.

Among its seventeen Articles, Article IV of the Texas Constitution established the Executive Department, which consists of a Governor; a Lieutenant Governor; a Secretary of State; a Comptroller of Public Accounts; a Commissioner of the General Land Office and an Attorney General, and it described each of these officers’ powers and duties.

In this piece, we will examine one of the largest of the state agencies: the Texas Comptroller of Public Accounts. This agency includes the state’s Chief Financial Officer (CFO) serving as tax collector, chief accountant, chief revenue estimator and chief treasurer for all of the state.

The Comptroller’s Office collects, processes, administers and manages over one hundred separate taxes, fees and assessments, including sales and use taxes, property taxes and franchise taxes collected on behalf of the some 1,800 Texas cities, counties and other local governments.

Under the Texas Administrative Code, each taxable entity formed in Texas or doing business in Texas must file a franchise tax report and pay a franchise tax (or privilege tax) for the privilege of doing business in Texas.  These taxable entities include corporations, limited liability companies (LLCs), professional and business associations and other legal entities.

Therefore, the Comptroller is required by law to forfeit a company’s right to transact business in Texas if the company has not filed an annual franchise tax report or paid a franchise tax as required under Chapter 171 of the Tax Code of Texas.

Sec. 171.251.  FORFEITURE OF CORPORATE PRIVILEGES.  The comptroller shall forfeit the corporate privileges of a corporation on which the franchise tax is imposed if the corporation:

(1)  does not file, in accordance with this chapter and within 45 days after the date notice of forfeiture is mailed or provided by electronic means, a report required by this chapter;

(2)  does not pay, within 45 days after the date notice of forfeiture is mailed or provided by electronic means, a tax imposed by this chapter or does not pay, within those 45 days, a penalty imposed by this chapter relating to that tax; or

(3)  does not permit the comptroller to examine under Section 171.211 the corporation’s records.

With the aforementioned regulations in place, consider this: If a corporation’s privilege to transact business in Texas is forfeited by the Comptroller and Secretary of State, what happens to the outstanding taxes, penalties and other debts that are owed to the State of Texas by the corporation?

Section 171.255 of the Texas Tax Code states, “If the corporate privileges of a corporation are forfeited for the failure to file a report or pay a tax or penalty, each director or officer of the corporation is liable for each debt of the corporation that is created or incurred in this state after the date on which the report, tax, or penalty is due and before the corporate privileges are revived.”

Sec. 171.252.  EFFECTS OF FORFEITURE.  If the corporate privileges of a corporation are forfeited under this subchapter:

(1)  the corporation shall be denied the right to sue or defend in a court of this state;  and

(2)  each director or officer of the corporation is liable for a debt of the corporation as provided by Section 171.255 of this code.

Sec. 171.255.  LIABILITY OF DIRECTOR AND OFFICERS.  (a)  If the corporate privileges of a corporation are forfeited for the failure to file a report or pay a tax or penalty, each director or officer of the corporation is liable for each debt of the corporation that is created or incurred in this state after the date on which the report, tax, or penalty is due and before the corporate privileges are revived.  The liability includes liability for any tax or penalty imposed by this chapter on the corporation that becomes due and payable after the date of the forfeiture.

Yet countless forfeited corporations in Texas owe millions or billions of dollars, cumulatively, in franchise taxes, fees, penalties and interest to the state. The directors and officers of these corporations refuse to repay the state, instead committing tax evasion.

The consequences displaced onto ordinary citizens are staggering. If these names were to follow the law established in the Texas Tax Code and pay all outstanding debts they are liable for, Texas property owners would have significantly lower property taxes, if any at all.

One of these directors/officers is State Rep. Jacey Jetton (HD 26-R), who owes thousands of dollars in delinquent franchise taxes, fees, penalties, and interest to the state of Texas.

At least five corporations with Jetton listed as the registered agent, director or an officer have been forfeited by the Texas Secretary of State (SOS) for failure to file annual franchise tax reports and failure to pay franchise taxes due to the state. These corporations are listed below.

• Lucidergy, LLC. SOS forfeited in 2010 and owes over $2500; it is currently in collections through the Enforcement Department at the Comptroller’s Office. Jetton is listed as the Registered Agent.
• Propel Learning, LLC. SOS forfeited in 2011, and owes over $2500; it is currently in collections through the Enforcement Department at the Comptroller’s Office. Jetton is listed as the Registered Agent and Manager.
• Fort Bend Young Republicans. SOS forfeited in 2020, and owes over $1500. Jetton is listed as the President, Director, and Registered Agent.
• CastleCare Community Management, LLC. SOS forfeited in 2020 and owes over $2000. Jetton is listed as the Registered Agent and Manager.
• Modern Access Control Solutions, LLC. SOS forfeited in 2023. Jetton is listed as the Registered Agent.
• Pearl Xpress, LLC. SOS forfeited in 2012, and owes over $2500; it is currently in collections through the Enforcement Department at the Comptroller’s Office.

The actual amounts owed to the State of Texas by Jacey Jetton are thought to be significantly higher than the numbers reported above, possibly in the tens of thousands of dollars. These amounts are unknown to the state, as Jetton’s corporations may have incurred significant profits, but they failed to file franchise tax reports, and failed to pay their annual franchise taxes due to the state.

Critics say that rather than fulfilling his financial obligations to the state, Jetton chooses to spend his constituents’ property tax dollars every time he votes on legislation that results in increased costs to Texas taxpayers.

The below SOS forfeiture notifications and Franchise Tax Account Status documents can be found and verified through the Texas SOS’s website and through the Texas Comptroller’s website.

In 2020, Jetton ran a campaign against his political opponents, accusing them of refusing to pay their franchise taxes. Critics call this an ironic maneuver, considering his outstanding taxes due to the State of Texas, which ultimately trickles down to higher tax rates for Texas property owners.

Leaders, rule by example. Effective leaders align their habitual practices, routines and behaviors with their core values. This doesn’t result in a perfect leader, but it does breed an ethical, morally transparent and consistent leader in whom people feel confident placing trust.

The Texas Primary Election is on March 5. Early voting will be conducted from February 20 through March 1.