The sales tax in the Harvest district would be 8.25% total, which is a 0.75 percentage point increase from what it currently is, per town documents. This is the maximum sales tax that can be collected under state law, according to the Texas Municipal League. Early voting will be Oct. 20-31.
“It’s going to boil down to this,” Argyle Town Manager Mike Sims said. “Should the folks in Harvest pay the same sales tax as everybody else in the town of Argyle?”
What happening?
The proposition to increase sales tax in the Harvest district, located in Argyle’s extraterritorial jurisdiction, ETJ, was first put before voters during the May 3 election, but failed with 553 voting against and 546 voting for the proposed sales tax rate, according to Denton County’s website.
Town officials called the special election at the July 21 meeting. Costs for the election could range from $9,000-$12,000, per town documents. The reason for the proposition’s failure stemmed from a lack of information provided about the sales tax increase, town officials said. This special election will not affect the sales tax collected within town limits, which is 8.25% divided between the state and Argyle, per town documents.
A sales tax agreement between Argyle and Belmont Freshwater Supply District No. 2 went into effect in December, Sims said. The Belmont district is a government entity that provides water infrastructure, utilities and services to residents outside of town limits, said Kelsey Taylor, general counsel for the district. The district includes Harvest’s residential and commercial areas. Neither Argyle nor the Belmont district has received sales tax revenue from Harvest yet, Sims said.
Currently, the sales tax collected in Harvest is 7.5%, which is divided between the state, Argyle and the Belmont district, per town documents.
If voters approve the sales tax increase, then the local 2% collection will be split between the Belmont district, Argyle and Argyle’s Municipal Development District, a special-purpose district created to support economic development, according to the district’s website.
The impact
Argyle Mayor Ronald Schmidt wants to shift the town’s revenue stream from property taxes to sales taxes, he said.
“We’re trying to gather as much [sales tax] as we can to make sure that we always stay ahead,” Schmidt said.
If the sales tax increase passes, the town would potentially see $500,000 annually once Tom Thumb opens in Harvest in spring 2026, which would go to town operating expenses, Sims said.
Taylor projected that the Belmont district would receive $300,000 to $400,000 annually once Harvest reaches full build-out, which would pay for Argyle police services in Harvest.
Diving deeper
If the sales tax proposition fails, town officials plan to ask voters to pass the increase again at the May 2026 election, Schmidt said.
“Even though [Harvest] is a small area, it still represents over 15% of what we currently collect in sales tax,” he said. “It’s a significant amount that we don’t want to leave on the table.”
Harvest currently has two commercial properties being taxed, Chick-fil-A and McDonald’s, but by the end of 2026, there will be several more retail sites added, said Guy Grivas, Hillwood’s vice president of retail.
Hillwood, a real estate and development company, is currently in the first phase of developing a commercial center with over 98,000 square feet of retail, including the 63,000-square-foot Tom Thumb, he said.
Groceries are tax exempt, meaning shoppers will not see an increase to grocery items such as eggs, fruits, breads and unprepared foods, Grivas said.
What's next?
Tom Thumb is anticipated to open next spring, with much of the retail in Harvest included in the first phase of development close to follow, Grivas said.
The second phase of the project, which includes approximately 38,000 to 50,000 square feet of retail and restaurant space along I-35W, is anticipated to finish at the end of 2026 or beginning of 2027, he said. The remaining sites will be developed on a deal-by-deal basis, Grivas said.
