Downtown Sherman businesses will keep getting part of their sales tax back. The City Council voted unanimously at its Monday, Nov. 2 meeting to keep the Main Street Reimbursement Program going, KTEN reported.
The decision answers a question city staff put to the council in that day's agenda packet: with enrollment ending Jan. 1, 2027, for most of the businesses now in the program, should it continue indefinitely or end when 2026 runs out? Staff recommended letting current participants finish their terms while continuing to take new applications indefinitely. KTEN described the council's action as a five-year extension.
The city had not posted minutes of the meeting when this story was prepared, so the exact terms of the extension could not be confirmed from a city record.
How the program works
The council created the program in August 2023 to draw retailers to Sherman's historic downtown, according to city documents. A qualifying downtown business can be rebated the city's 1% general sales tax that it collects, for up to five years. Businesses already enrolled will keep receiving payments until their five-year window closes, whatever direction the council takes, the staff report says.
Sarah McRae, who manages tourism and Main Street for the city, told KTEN that the rebated money is the 1% share that used to go to the general fund, while the other 1% still supports economic development. "As far as I know, we are the only city to do this program," she told the station.
The cost
The staff report says the program has rebated about $255,000 across four tax years. KTEN put the total since the program began at $268,000, spread among 38 enrolled businesses. The city does not disclose what each business receives, citing the confidentiality of sales tax records, but it says rebates averaged $3,183 for tax year 2025.
The city has budgeted an estimated $70,000 for tax year 2026. Staff estimated 2027 costs at about $25,000, a figure they said depends on how many businesses enroll and on the economy.
