Flower Mound - Highland Village - Argyle | October 2025

Argyle calls sales tax election to generate $500K From the cover

The impact

What’s happening?

Argyle sales tax collection areas Argyle town limits Belmont Freshwater Supply District No. 2 ETJ

Argyle Mayor Ronald Schmidt wants to shift the town’s revenue stream from property taxes to sales taxes, he said. “We’re trying to gather as much [sales tax] as we can to make sure that we always stay ahead,” Schmidt said. If the sales tax increase passes, the town would potentially see $500,000 annually once Tom Thumb opens in Harvest in spring 2026, which would go to town operating expenses, Sims said. Taylor projected that the Belmont district would receive $300,000 to $400,000 annually once Harvest reaches full buildout, which would pay for Argyle police services in Harvest.

The proposition to increase sales tax in the Harvest district, located in Argyle’s extraterritorial jurisdiction, ETJ, was first put before voters during the May 3 election, but failed with 553 voting against and 546 voting for the proposed sales tax rate, according to Denton County’s website. Town officials called the special election at the July 21 meeting. Costs for the election could range from $9,000-$12,000, per town documents. The reason for the proposition’s failure stemmed from a lack of information provided about the sales tax increase, town officials said. This special election will not affect the sales tax collected within town limits, which is 8.25% divided between the state and Argyle, per town documents. A sales tax agreement between Argyle and Belmont Freshwater Supply District No. 2 went into effect in December, Sims said. The Belmont district is a government entity that provides water infrastructure, utilities and services to residents outside of town limits, Kelsey Taylor, general counsel for the district, said. The district includes Harvest’s residential and commercial areas. Neither Argyle nor the Belmont district has received sales tax revenue from Harvest yet, Sims said. Currently, the sales tax collected in Harvest is 7.5%, which is divided between the state, Argyle and the Belmont district, per town documents. If voters approve the sales tax increase, then the local 2% collection will be split between the Belmont district, Argyle and Argyle’s Municipal Development District, a special-purpose district created to support economic development, according to the district’s website.

ROBSON RANCH RD.

COUNTRY CLUB RD.

35W

377

Argyle

407

Within town limits

6.25%: State 2%: Argyle

Sales taxes revenue history General fund Crime Control and Prevention District

Municipal Development District

1%: Town's general fund

Street maintenance

0.25%: Municipal Development District 0.25%: Crime Control and Prevention District 0.5%: Street maintenance fund

$890.3K

+92.67% increase in total sales tax revenue

8.25% sales tax

$797.4K

$712.7K

$433.4K

$389.7K

$470.3K

$563.6K

$349.7K $355.6K

$412.3K

Harvest district tax rate (if passed)

$465.7K

$280K $276.5K

6.25%: State 2%: Argyle

$225.3K $232.9K

0.875%: Town's general fund

$1.78M

$1.59M

$1.43M

$1.13M

0.25%: Municipal Development District 0.875%: Belmont Freshwater Supply District No. 2

$931.5K

8.25% sales tax

SOURCE: TOWN OF ARGYLE/COMMUNITY IMPACT

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