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."

An imminent change to how online sales taxes are collected stands to devastate Round Rock&rsquo;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&nbsp;<a href="https://www.roundrocktexas.gov/wp-content/uploads/2021/07/CORR-Original-Petition-7.12.21.pdf" data-saferedirecturl="https://www.google.com/url?q=https://www.roundrocktexas.gov/wp-content/uploads/2021/07/CORR-Original-Petition-7.12.21.pdf&amp;source=gmail&amp;ust=1626960303883000&amp;usg=AFQjCNG5QnuIm5cftw4TshqEQPC4Jy7Vjw">recent lawsuit</a>&nbsp;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&nbsp;<a href="https://www.statesman.com/business/20200221/sales-tax-plan-could-deal-blow-to-round-rock-other-cities" data-saferedirecturl="https://www.google.com/url?q=https://www.statesman.com/business/20200221/sales-tax-plan-could-deal-blow-to-round-rock-other-cities&amp;source=gmail&amp;ust=1626960303883000&amp;usg=AFQjCNGPCoaRMq2LTe2SSqbVtGzJROJe2w">harm to Round Rock and its citizens is a drastic reduction of millions of dollars of sales tax revenue</a>&nbsp;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."

News Briefs from the Austin American Statesman, Austin, TX

News Briefs from the Austin American Statesman, Austin, TX

Austin News Briefs - Austin American Statesman

Austin - Round Rock files suit to protect millions it reaps in taxes from internet sales