TX SB2747

Prohibits municipalities and their local government corporations from entering sales tax rebate or incentive agreements with retailers that involve relocating or establishing a business from another Texas municipality unless the agreement provides economic benefits beyond just tax benefits

Requires that for such agreements to be valid, the retailer must have a substantial business purpose other than obtaining tax benefits for entering into the arrangement

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

Empowers the comptroller to disregard the business location for sales tax allocation purposes and revoke sales tax permits if a municipality violates these restrictions

Takes effect September 1, 2025