Judge raises idea of capturing county share of state sales tax; work and city coordination ahead

Van Zandt County leaders discussed pursuing legislation or an election to recapture a portion of state sales and use tax revenue currently remitted to the state and cities. The county judge said the county currently receives no portion of the sales tax on in-county sales and that reclaiming part of the local 8.25% sales-and-use-tax base could provide revenue for roads and other county services. He said the county is at an early exploratory stage and will need to coordinate with municipal governments and state agencies. The judge said the county is not seeking to increase the overall 8.25% tax paid by consumers but rather to pursue a mechanism for returning a share to county government for local uses. He said county staff, the district attorney and outside counsel are researching options and that the effort will include discussions with municipalities about revenue-sharing and the public process. One commissioner asked whether capturing county sales tax revenue could affect annexation processes and give the county more leverage in negotiations; county staff and the judge said they will examine legal options and related consequences. No formal action was taken; the judge said the item was placed on the agenda to make the court aware of the initiative and to begin intergovernmental outreach and technical work required to pursue any change.