Don’t change the sales tax rules | Opinion
“You’re still paying the tax, but you’re getting no benefit. And your roads will still have potholes that need to be filled,” he wrote.
Now the Legislature in House Bill 5089, authored by Morgan Meyer, plans to make Hegar’s idea permanent. The proposed change has some cities, like Coppell, DeSoto, Humble and Round Rock, suing to stop it. Compliance would be costly, too. Texas has about 850,000 businesses, and of those, 600,000 are in only one location. Currently, they file one sales tax record. The new system will necessitate rigorous compliance issues. Sales tax compliance estimates for businesses will average about $1,600 per business and could exceed $700 million statewide, according to Kasner.Round Rock made a deal with Dell in 1993 that influenced the company to locate in Texas, rather than in Tennessee.
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