Argyle MDD staff reports February sales-tax data; ZAC Tax audit proposed to fix taxing‑jurisdiction mismatches

MDD staff provided the board with February sales‑tax collections and proposed an address‑audit project to ensure online purchases are assigned to the correct taxing jurisdictions.

Harrison reported that February collections were $64,125 (a 6.74% decrease from the prior February), while year‑to‑date collections are up $37,071 or 15.29% compared with the previous year. Staff noted that February 2025 included a statewide catch‑up payment from a national retailer that affects month‑to‑month comparisons; still, year‑to‑date figures remain meaningfully higher than last year. Staff cited ZAC Tax projections that place year‑end MDD revenue between about $649,000 and $662,000 versus $563,000 last year.

To improve accuracy of taxing‑entity assignments for online sales, staff proposed a $2,350 ZAC Tax project to audit parcel and address assignments and to work with the Texas Comptroller to correct discrepant addresses. Harrison said ZAC Tax’s work would take about 45–60 business days after contract execution and that the cost is affordable under the current budget. Staff added that larger platforms (Shopify, Amazon) may take additional time to update their data feeds because vendors pull Comptroller corrections on different schedules.

Board members supported moving forward with the audit and noted the importance of improved jurisdictional accuracy to capture legally owed sales tax. Staff will execute the audit and return with findings and recommended follow‑up steps to reduce leakage.