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Farmers Branch leaders urge residents to oppose House Bill 134, warn of $5 million local hit
Summary
Council members and the mayor traveled to Austin to oppose House Bill 134, which would change sales tax collection to destination-based remittance; Councilman Roman estimated an approximate $5 million impact to Farmers Branch and urged residents to contact Ways and Means committee members.
Council members and the mayor told the Farmers Branch City Council on March 18 that they traveled to Austin to oppose House Bill 134, a proposed change to sales-tax remittance that they say would move tax receipts to the delivery destination rather than the seller's location.
Councilman Roman said he and the mayor went to Austin and testified with representatives from Coppell, Carrollton and Round Rock against the bill. "That's House Bill 134. Essentially it's changing the way that sales taxes are going to be collected — instead of an origin-based system it's going to destination," Councilman Roman said. "I think the economic impact from us is about $5,000,000."
Roman cautioned that the $5 million estimate reflects the immediate remittance change and does not include possible downstream effects such as businesses relocating or lost economic-development leverage. "$5,000,000 is a big deal for us," he said, noting the potential effect on the city's ability to provide services.
The mayor echoed those concerns and said the council asked residents to contact members of the Texas House Ways and Means Committee and local lawmakers to express opposition. The mayor also said Coppell anticipated a $30 million hit if similar legislation were adopted and pointed out potential wider impacts, including effects on DART and regional revenues.
Both Roman and the mayor described attending hearings in Austin and organizing with other cities and municipal attorneys to oppose the measure. The mayor said Farmers Branch's city manager and assistant city manager accompanied council members to Austin. Council members urged residents to contact representatives on the Ways and Means Committee to voice concerns.
No formal council action on HB134 was taken at the March 18 meeting; the discussion was an update from Councilman Roman and the mayor and a public appeal to residents to engage with state legislators.
