|Ballot proposition||The adoption of a local sales and use tax in the City of Watauga at the rate of 1.25%.
La adopción de un impuesto local de ventas y uso en la Ciudad de Watauga a una tasa del 1.25%.
|If I vote FOR||The city will adopt a general fund sales tax rate of 1.25%.|
|If I vote AGAINST||The city will continue to have a general fund sales tax rate of 1%.|
|Tax consequences||Until November 2020, the city’s total sales tax rate was 8.25% (6.25 for state government, 0.5% for city crime control and prevention, 0.25% for city economic development, 0.25% for city street maintenance, and 1% for the city’s general fund).
In November 2020, the 0.25% street maintenance sales tax was not renewed, and the city’s total sales tax rate dropped from 8.25% to 8.0%.
If the proposition passes, the city’s total sales tax rate will return to 8.25%; if it does not, the sales tax rate will remain at 8.0%.
|What is a sales and use tax?||This is the formal name for a sales tax. Individuals pay sales taxes on most goods and services in Texas.
|What is the current sales tax rate?||The base rate for the Texas sales tax is 6.25%. However, local government agencies (cities, counties, special purpose districts and transit authorities) can hold elections to increase the sales tax in their area. By law, the maximum sales tax rate (including state and local sales taxes) is 8.25%.
The current sales tax in the city of Watauga is 8.0%, of which 6.25% goes to state government, 0.5% goes to fund the Watauga Crime Control & Prevention District, 0.25% funds the Economic Development Corporation, and 1% goes to the city’s general fund.
|Background||In 2012, Watauga voters decreased the 0.5% sales tax that funded its Parks Development Corporation (now the Economic Development Corporation) to 0.25%, and adopted a 0.25% sales tax to fund maintenance and repair of city streets.
In the November 2020 election, a proposition that would have abolished the 0.25% sales tax that funds street maintenance and repair and added 0.25% to the city’s general sales tax failed. When the proposition failed, the 0.25% street maintenance tax was not reauthorized. This meant that the overall sales tax in Watauga dropped from 8.25% to 8.0% and the city currently collects 0.25% less in sales tax to fund city operations.
|Resources||Contact City Secretary
https://www.cowtx.org/FormCenter/Contact-US-18-18/Contact-Us-City-Secretary-92-92 (website form)
City of Watauga, Ordinance 2021-14 (calling special election), https://www.cowtx.org/DocumentCenter/View/13015/May-1-2021-Special-Election-Local-Sales-and-Use-Tax?bidId=
City of Watauga, Fiscal Year 2020-21 Budget, https://www.cowtx.org/DocumentCenter/View/11740/FY2020-2021-BUDGET-DOCUMENT
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