Coppell could net $12M less per year in sales tax under rule change

The city of Coppell could stand to net tens of millions of dollars less in sales tax revenue over the coming years.

City Manager Mike Land updated council at a Feb. 25 meeting about a potential change in how Texas cities collect online sales tax. This change would require remote sellers of online products to collect sales tax from the destination location rather than the origination location, according to the Texas Comptroller’s office.

This change would result in Coppell collecting about $12 million less per year in sales tax revenue, Land said. Housed within the city of Coppell are multiple major online retail distribution centers, including Staples, The Container Store and three Amazon facilities.

Land said the city is moving forward as if the rule change has already gone into effect.

“This whole game is changing,” Land said. “We have to build a new model for how we attract revenues. Because sales tax ... we have always said is volatile."

The city anticipates the rule change will go into effect Oct. 1.

"However this rule changes, we are going to abide by it,” Land said.