Texas Looks to Rein in Tax Deals Tailored to E-Commerce Giants

Texas cities are at odds over a proposal from the state comptroller to curtail deals that give companies including Dell Technologies Inc. and Best Buy Co. Inc., substantial chunks of their local sales tax collections as incentives to locate or stay there.

Comptroller Glenn Hegar’s (R) proposal would stop deals that base the local sales taxes paid with e-commerce purchases on where a company’s sales office or warehouse is located, instead of on the customer’s location. Hager says those deals concentrate sales tax revenue within the borders of at least a dozen cities and take it away from others. ...