TX HB5169

Prohibits municipalities and their local government corporations from entering into sales tax rebate, grant, or loan agreements with retailers that involve relocating or establishing a business to shift sales tax revenue from one Texas municipality to another

Requires that any such agreement must change the retailer's economic position through means other than tax benefits, and the retailer must have a substantial non-tax purpose for entering the agreement

Applies to agreements where municipalities offer to rebate sales tax revenue or provide grants/loans based on sales tax amounts to retailers or their affiliated group members

Authorizes the comptroller to disregard the retailer's place of business for sales tax allocation purposes and revoke the location's sales tax permit if a municipality violates these restrictions

Takes effect September 1, 2025