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Texas sales tax rate changes, July 2017


 Local tax rates in Texas.

Numerous changes affecting sales and use tax took effect in Texas July 1, 2017.

Name changes

Corral City (Denton County), which has a combined sales and use tax rate of 8%, changed its name to Draper. The name change extends to the (now) Draper Municipal Development District.

Grulla (Starr County), which has a combined sales and use tax rate of 7.25%, changed its name to La Grulla.

Rate decreases

Hamlin abolished its additional city sales and use tax for economic and industrial development. A combined state and local rate of 8% is now in effect for the following:

  • Hamlin, Fisher County
  • Hamlin, Jones County

Special purpose districts

As of July 1, Hill County Emergency Services District No. 2, excluding the cities of Hillsboro and Whitney, adopted a 0.5% sales and use tax in the following incorporated city limits:

  • Aquilla
  • Blum
  • Bynum
  • Covington
  • Mertens
  • Mount Calm
  • Penelope

A 1% local sales tax was adopted as of July 1 in Hill County Emergency Services District No. 2-A, which is the unincorporated area of Hill County. The 1% tax does not apply to any incorporated area in the county.

Other changes affecting special purpose districts:

  • Hamlin Municipal Development District (in both Fisher County and Jones County) imposed a 0.25% local sales and use tax. The boundaries of the Hamlin Municipal Development District are the same as Hamlin city boundaries.
  • Travis County Emergency Services District No. 14, with a local rate of 1%, withdrew from the Austin Metropolitan Transit Authority.

Additional information is available from the Texas Comptroller.

Local sales and use tax rate changes must be applied to all sales transactions in affected areas as of the effective date. Tax automation software enables businesses to quickly and efficiently account for tax rate changes, increasing compliance. Learn more.


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.