Round Rock suing to protect millions it reaps from online sales taxes

Round Rock suing to protect millions it reaps from online sales taxes


The amount of sales tax revenue that Round Rock reaps from its long-standing incentive agreement with Dell Technologies will be affected under a new system for collecting online sales taxes that will begin Oct. 1.

An imminent change to how online sales taxes are collected stands to devastate Round Rock’s municipal finances and upend its nearly 30-year-old incentive agreement with Dell Technologies that brought the computer maker to the suburb just north of Austin in 1994.

That’s according to a recent lawsuit filed by Round Rock against Texas Comptroller Glenn Hegar, which contends the change Hegar plans to implement Oct. 1 constitutes “an invalid and illegal rule” that will topple longstanding state policy.

“The resulting harm to Round Rock and its citizens is a drastic reduction of millions of dollars of sales tax revenue annually,” the lawsuit states. “Round Rock cannot absorb such a devastating reduction in revenue without cutting its budget and city services, raising property tax rates, or a combination of both.”



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