What happened: From groceries to gadgets, the largest Costco in Texas is now open in Midland.

Why it matters: Mayor Lori Blong called the new store a major driver of regional economic growth in a recent column for the Odessa American.

“The opening this week of Costco is important because sales tax collection matters in Midland,” Blong said. “Every time someone chooses to shop, dine, or stay in Midland—from our neighbors in Odessa to travelers from across the Permian Basin—they’re helping fund city services and reduce the burden on local property taxpayers.”

Blong noted that up to 45% of Midland’s retail spending comes from non-residents, according to economic data.

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“That means nearly half of the sales tax dollars collected in our community are generated by people who don’t live here—but are choosing to spend their money here,” Blong said. “That’s a win for every homeowner.”

She also emphasized that sales tax revenue covers essential services that property taxes alone do not cover.

“Most residents don’t realize that property taxes alone don’t even cover the cost of operating our Police and Fire Departments,” Blong said. “Sales tax revenue bridges that gap—supporting everything from public safety to street maintenance, parks, and capital improvements.”

Go deeper: Costco received economic development incentives from the City of Midland and the Midland Development Corporation (MDC). The MDC agreed to reimburse up to $6.5 million for infrastructure and site improvements if the company meets three separate milestones: completion of construction, maintaining 100 full-time jobs for at least one year, and then maintaining those jobs for a second consecutive year.

The city offered a 50% rebate on its share of real and property taxes for 20 years, and 50% of total local sales and use tax revenue for 30 years. Both rebates were contingent on the store opening. The city also provided a one-time rebate for development and permit fees.