BREAKING: BestBuy.Com Coming To San Marcos Projecting $300M In Yearly Retail Sales

This morning the Hays County Commissioners Court approved a Chapter 380 Economic Development Incentive Agreement with BestBuy.com, who is planning the opening of an “e-commerce facility” in San Marcos.

“I believe BestBuy.com would be the second largest sales tax generator in the City of San Marcos,” stated Adriana Cruz, president of the Greater San Marcos Partnership.

BestBuy.com is planning on moving into an existing, vacant building on Bugg Lane.

BestBuy.com is estimating $300 million a year in retail sales, and Hays County would be entitled to $1.5 million in sales tax. As long as BestBuy.com honors their Chapter 380 Economic Development Agreement, Hays County would refund/reimburse $1.125 million in the 5th year.

According to the 380 Agreement, BestBuy.com will also receive up to 50 percent reimbursement/refund of taxes paid on “Personal Property.”

The City of San Marcos is set to hear and vote on the same 380 Economic Development Agreement with BestBuy.com at tonight’s city council meeting with these items attached:

• Project Texas shall occupy existing space in San Marcos to operate an “internet retail sales operations center.”
• Project Texas shall begin operation of the business in San Marcos on or before January 1, 2017, and shall not operate any other substantially similar internet retail sales operations center within the State of Texas.
• An expected $300,000,000 in internet retail sales, subject to sales and use tax, shall be generated and allocated to the City each year.
• Project Texas shall employ a minimum of 25 persons in year 1, 40 persons in year 2 and 50 persons in year three in permanent, full-time positions earning at least $15 per hour.

If the City of San Marcos approves the Chapter 380 Economic Development Incentive Agreement tonight, BestBuy.com would owe an estimated $4.5 million in sales tax per year.

As long as BestBuy.com honors the 380 Agreement, the City of San Marcos would  reimburse/refund a total of $3.375 million, leaving San Marcos with an extra $1.125 million per year in their budget that they currently do not receive.

The City of San Marcos would also refund up to 50 percent of taxes paid on all Personal Property. Those numbers are not currently known.

City of San Marcos Agenda item 20

Consider approval of Resolution 2016-112R approving a Chapter 380 Economic Development Incentive Agreement for “Project Texas” that provides incentives in the form of annual refunds of 50 percent of ad valorem taxes from personal property and 75 percent of sales tax revenues generated over ten years, with a possible extension for two additional ten-year periods, for the receiving company to locate and operate an Internet Sales Operations Center in the city.