Legislative Win: HB 134 Fails to Pass – A Major Victory for Round Rock’s Economy

The Round Rock Chamber is proud to report that House Bill 134 did not pass during the 2025 legislative session—a significant win for our community and one of the Chamber’s top legislative priorities this year.

HB 134 proposed a fundamental change to Texas’ sales tax sourcing model, shifting from an origin-based system to a destination-based system. This bill would have diverted millions in annual sales tax revenue away from communities like Round Rock, undercutting the ability of cities to invest in infrastructure, support business recruitment, and maintain long-standing economic development agreements.

Why This Matters

Had it passed, HB 134 would have:

• Diverted up to $30 million annually from Round Rock’s local budget—just from sales tax collected by Dell alone.
• Jeopardized local funding for essential services like roads, utilities, public safety, and property tax relief.
• Undermined economic development tools, such as Chapter 380 agreements, used by communities to attract and retain employers.
• Broken long-term partnerships with companies that have delivered thousands of jobs and billions in investment.
• Created compliance burdens for small businesses by requiring them to track and remit sales taxes across more than 1,700 taxing jurisdictions.

Thanks to the coordinated efforts of chambers, economic development organizations, cities, and business leaders across the state—including testimony from Chamber President & CEO Jordan Robinson—this bill was stopped before it could cause irreversible harm to Texas communities.

A Win for Round Rock’s Future

Round Rock has long benefited from a strong, locally driven approach to economic development. Tools like origin-based sales tax collection and performance-based agreements have helped our city grow from a rural town to a thriving economic hub. Defeating HB 134 means preserving those tools, protecting the integrity of local agreements, and maintaining our competitiveness for future job-creating projects.

Thank You for Your Support

We extend our sincere thanks to our members, partners, and elected officials who helped elevate this issue and protect Round Rock’s economic future. Your continued engagement in public policy helps ensure that our business community has the resources and environment it needs to thrive.

Stay Engaged

As we look ahead to future legislative sessions, we encourage our members to remain informed and involved in the Chamber’s advocacy efforts. Together, we will continue to champion policies that strengthen our economy and secure long-term prosperity for Round Rock.

For more information on the Chamber’s legislative priorities and how to get involved, visit https://roundrockchamber.org/about/business-advocacy/.