Retail purchases account for about a third of Murphy's sales tax revenue, Economic Development Manager Camryn Thompson told the City Council on Sept. 2.

Thompson presented the city's annual economic development report and said 64% of Murphy's sales tax revenue comes from local businesses, with the remaining 36% from online transactions, the Murphy Monitor reported. Separately, Thompson said about two-thirds of the city's sales tax revenue comes from in-person local sales, and half of that amount is from retail purchases.

That's the largest single slice of the city's sales tax base.

The numbers arrive as Murphy prepares for a public hearing on the proposed Fiscal Year 2027 budget and tax rate. The City Council voted 7-0 on Aug. 18 to set a proposed rate of $0.361832 per $100 of assessed valuation, according to council meeting records.

A Collin County taxpayer impact statement put the median Murphy home value at $592,198, up $39,095 from the prior year, the Murphy Monitor reported in August. The proposed rate, a 1.2% increase, would add $165.34 to the annual tax bill on that median home.

Murphy's retail landscape shifted when H-E-B opened on FM 544 on July 22. Mayor Scott Bradley, at the July 21 council meeting the night before the grand opening, expressed "his appreciation to everyone who worked to bring H-E-B to the city," according to the meeting minutes. Thompson's report did not specify how the grocery chain has affected sales tax totals.

Council Member Jené Butler signaled interest in doing more for local businesses. At the Aug. 18 meeting, Butler requested a future agenda discussion on city support for businesses, to be taken up at the council's January retreat.

The public hearing on the FY27 tax rate and budget is scheduled for 6 p.m. Sept. 15 at Murphy City Hall.