HB 5169

Shaheen Bill Bars Sales Tax Rebates For Retailer City-Hopping

Did not pass

Verdict: No flags

No flagsInitial review

Initial review · graded Oct 22, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to limitations applicable to certain agreements providing for a rebate of municipal sales and use taxes or a grant or loan based on those taxes.

Caption from analyzed text · version H.

Summary

The deal needs a real business purpose. Otherwise the comptroller revokes that location’s sales tax permit.

The bill bars a city, or a corporation the city created, from signing a sales tax rebate, grant or loan deal that moves a retailer's place of business into the city from another Texas city, or sets up a new one there, unless the deal has a real business purpose and changes the retailer's economic position beyond the tax break. It touches cities, their economic development corporations, retailers and their affiliated companies, and parties the retailer designates to receive the money. If the comptroller finds a city broke the rule, the comptroller ignores that location when deciding where sales happen for local tax purposes and revokes the sales tax permit for that location, starting September 1, 2025.

Labels

Labels: STALLED AFTER COMMITTEE. Voted out of the House Ways & Means committee 12-0 on May 7, 2025. Placed on the General State Calendar on May 15, 2025. The bill died.

Receipt

The receipt

89R-HB5169 · 2025-03-14

SOLD BY

Rep. Matt ShaheenRHouse 66

ITEM

relating to limitations applicable to certain agreements providing for a rebate of municipal sales and use taxes or a grant or loan based on those taxes.

WHAT IT DOES

The deal needs a real business purpose. Otherwise the comptroller revokes that location’s sales tax permit.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · May 8, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

Mar 14, 2025Filed
Apr 7, 2025Read first time
Apr 7, 2025Referred to Ways & Means
Apr 28, 2025Scheduled for public hearing on . . .
Apr 28, 2025Considered in public hearing
Apr 28, 2025Testimony taken/registration(s) recorded in committee
Apr 28, 2025Left pending in committee
May 7, 2025Considered in formal meeting
May 7, 2025Committee substitute considered in committee
May 7, 2025Reported favorably as substituted
May 12, 2025Comte report filed with Committee Coordinator
May 12, 2025Committee report distributed
May 12, 2025Committee report sent to Calendars
May 13, 2025Considered in Calendars
May 15, 2025Placed on General State Calendar

FILED UNDER

CORPORATE WELFARE

THE TEXT

…“may not enter into an agreement to which this section applies with a retailer, a member of the retailer's affiliated group, or another party designated by the retailer that results in the relocation or establishment of a place of business”…

Bill text, House committee report version (H)

The bill limits city sales tax rebate deals that pay retailers to move where their sales are taxed, unless the deal has real business substance beyond the tax break.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Matt Shaheen

Donors

Texas Conservative Majority PAC$402K Court Reform Action for Families Texas PAC$100K Texans for Lawsuit Reform PAC$86K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 30, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Conservative Majority PAC$401,656.00

Texas Conservative Majority PAC

$401,656.00

Cash: $60,000.00
Paid by others: $341,656.00
Total: $401,656.00

canvassing $317,206.00polling $24,450.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Aug 25, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101069212, 101071870.

Court Reform Action for Families Texas PAC$100,000.00

Court Reform Action for Families Texas PAC

$100,000.00

Cash: $100,000.00
Paid by others: $0.00
Total: $100,000.00

Also funds 32 other sitting lawmakers.

Derived recipient stock · Feb 20, 2026 to Oct 14, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Sep 22, 2026 to Oct 10, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101069212, 101071870.

Texans for Lawsuit Reform PAC$85,700.00

Texans for Lawsuit Reform PAC

$85,700.00

Cash: $50,000.00
Paid by others: $35,700.00
Total: $85,700.00

advertising $20,000.00polling $15,700.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Aug 11, 2025 to Sep 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101028938, 101069212, 101071870.

Money

Missing data does not establish zero giving. Display amounts are rounded.

Texas Conservative Majority PAC

$401,656.00

Cash: $60,000.00
Paid by others: $341,656.00
Total: $401,656.00

canvassing $317,206.00polling $24,450.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Aug 25, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101069212, 101071870.

Court Reform Action for Families Texas PAC

$100,000.00

Cash: $100,000.00
Paid by others: $0.00
Total: $100,000.00

Also funds 32 other sitting lawmakers.

Derived recipient stock · Feb 20, 2026 to Oct 14, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Sep 22, 2026 to Oct 10, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101069212, 101071870.

Texans for Lawsuit Reform PAC

$85,700.00

Cash: $50,000.00
Paid by others: $35,700.00
Total: $85,700.00

advertising $20,000.00polling $15,700.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Aug 11, 2025 to Sep 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101028938, 101069212, 101071870.

Votes

No floor vote loaded for this bill.

Witnesses4

For: 3
Against: 1
On: 0

Names

For

City of Georgetown2 registrations
Town if Prosper1 registration

Against

Self1 registration

Sources

4 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · May 8, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version H by claude-opus-5-5, Oct 22, 2026, against the published rubric.

Sources

Texas House · Filed Mar 14, 2025

05/15/2025 H Placed on General State Calendar

Texas Legislature Online · Introduced · House Committee Report

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Ways & Means · Committee vote 12 aye, 0 nay, 1 absent · Out of committee

Companion

SB 2747 by Paxton (identical)

Subjects

Business & Commerce--General

Taxation--Sales

COMPTROLLER OF PUBLIC ACCOUNTS

Text

The text as introduced · 496 words

89R10878 CJD-F

By: Shaheen
H.B. No. 5169

A BILL TO BE ENTITLED

AN ACT

relating to limitations applicable to certain agreements providing

for a rebate of municipal sales and use taxes or a grant or loan

based on those taxes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 321, Tax Code, is amended

by adding Section 321.006 to read as follows:

Sec. 321.006. MAXIMUM AMOUNT OF CERTAIN TAX INCENTIVES.

(a) This section applies to an agreement between a municipality or

a local government corporation or other entity created by a

municipality and a business under which:

(1) the business agrees to relocate to the

municipality from one or more other municipalities in this state;

and

(2) the municipality, corporation, or other entity

agrees to:

(A) rebate to the business an amount of tax

imposed by the municipality under this chapter or an amount of

revenue derived from that tax; or

(B) provide a grant or loan to the business in an

amount that is based on an amount of tax imposed by the municipality

under this chapter or based on an amount of revenue derived from

that tax.

(b) Notwithstanding any other law, if a business is

relocating from one municipality in this state to another

municipality pursuant to an agreement described by Subsection (a):

(1) the amount of a rebate, grant, or loan described by

Subsection (a) may not exceed the amount of any similar rebate,

grant, or loan provided by the municipality from which the business

is relocating; and

(2) the duration of an agreement described by

Subsection (a) may not exceed the duration of any similar agreement

between the business and the municipality from which the business

is relocating.

(c) Notwithstanding any other law, if a business is

relocating from more than one municipality in this state to another

municipality pursuant to an agreement described by Subsection (a):

(1) the amount of a rebate, grant, or loan described by

Subsection (a) may not exceed the weighted average amount of any

similar rebates, grants, and loans provided by the municipalities

from which the business is relocating, weighted according to the

amount of taxes under this chapter collected by the business in each

of those municipalities; and

(2) the duration of an agreement described by

Subsection (a) may not exceed the weighted average duration of any

similar agreements between the business and the municipalities from

which the business is relocating, weighted according to the amount

of taxes under this chapter collected by the business in each of

those municipalities.

SECTION 2. Section 321.006, Tax Code, as added by this Act,

does not apply to an agreement entered into before the effective

date of this Act, except that Section 321.006, Tax Code, as added by

this Act, does apply to any renewal, modification, or extension of

the agreement that occurs on or after the effective date of this

Act.

SECTION 3. This Act takes effect September 1, 2025.