The builder of a nursing facility sued the City of Kemp for breach of contract and con-tort claims, alleging that the city had failed to honor a tax abatement deal agreed upon before construction. The city promptly obtained dismissal of the case on grounds of governmental immunity. On appeal, the builder’s first issue claimed that “the concept of governmental immunity — even if not otherwise specifically waived — simply does not apply to the proprietary actions that form the basis of [the builder’s] claims.” The Court of Appeals disagreed. While a municipality is not immune from torts committed in the performance of “proprietary functions,” the assessment and collection of taxes is a quintessentially governmental function.
Douglas v. City of Kemp, Texas, No. 05-14-00475-CV