Arlington sales tax increase likely headed to voters. Why the city says money is needed
The council voted 8-0, with councilwoman Helen Moise not present. The proposal will come before the council a final time on Feb. 11. If approved, voters will be asked to boost the rate to 8.25%, the highest allowed by law.
The city’s sales tax includes a half cent for the debt on Globe Life Field and AT&T Stadium. One cent goes to the general fund, a quarter cent goes toward street maintenance, and the other 6.25% goes to the state. The city expects to raise $68.4 million in 2020 through its sales tax, accounting for 25.4% of its general fund revenues. Property taxes will bring in $118.8 million.
The city hopes a sales tax increase would provide some property tax relief, said City Manager Trey Yelverton said. Also limits on property tax revenue increases also create a need for new tax revenue, he said.
“By necessity we need to expand our tax base to provide services our residents expect,” he said.
Linda Wright was among eight residents who spoke against the proposal. She doubts the sales tax would create property tax relief. She hasn’t seen her bill from the city decrease in years and thinks the tax should be on a November ballot, with more voter education between now and then.
Residents also questioned the timing and place of the vote. The vote came during an afternoon session in the briefing room instead of the City Council Chambers, where meetings are regularly held.
Yelverton said the tax would help economic growth, improve infrastructure, and help turn Arlington into a major activity hub for the Metroplex. He said it would also allow the city to better respond to residents’ demands for street maintenance, improved lighting and more first responders.
Michael Jacobson, president and CEO of the Greater Arlington Chamber of Commerce, said Tuesday that the sales tax increase and the investment of money from that tax into economic development will help the city remain competitive in the future.
Yelverton said it is important to hold the election in May because it would allow the city to start collecting taxes Oct. 1, when the fiscal year begins.
This story was originally published February 4, 2020 at 9:07 PM.