Arlington voters, here’s one tax increase that will pay off for city’s future
Those concerned about Arlington’s disadvantage in competing with area cities to attract corporate investment, jobs, and property tax reductions will have a chance to change that in the May elections.
Up to now, Arlington has been the only major city in the region leaving a huge revenue source behind that could be used to increase the quality of life for all its citizens.
The question on the ballot will be about implementing a one-quarter cent sales tax to finally launch a sustainable economic development program to seize on the momentum that has lately propelled $5 billion in new growth in the city.
It’s more than that, however, and it’s important for voters to look beyond any initial hesitation to bring Arlington even with what surrounding cities do to take advantage of the resource that propels their communities.
That one-fourth of a penny would add 25 cents to the cost of $100 in sales taxable purchases. But it would put a $17 million yearly investment into attracting corporate America to the city.
That figure would grow substantially with the burgeoning tourism and retail economies the city enjoys.
The best part of this revenue source: according to credit card receipts, most of the sales tax is being paid by people who live outside the city.
Current city sales taxes, all of which have been authorized by voters, produce the second largest source of revenue for the city budget that helps fund everything from the police and fire departments to parks and libraries and the rest of the services that support the daily lives of all Arlington residents.
The half-cent for sports facilities produced an economic boom in the entertainment district, and another quarter cent has paid for $200 million in road and street improvements since it was first authorized in 2002.
The growth in sales-tax revenues has contributed to four consecutive years of reduction in the property tax rate and saved property owners more than $13 million.
Bu, nothing is specifically devoted to economic development to boost the commercial tax base so that homeowners property tax bills can drop.
A great example of the benefit of incentivizing corporate investment is dramatically illustrated by the success of The Highlands development on Interstate 20.
The vacant land before the project was built was on the tax rolls at $17 million, producing $110,000 in property tax for the city. Today, the property value is just under $285 million and generates $1.8 million in annual revenue for Arlington.
That result came about by creating a special tax investment zone where tax revenues were used for a limited time for public improvements for the area. Now, all the taxes benefit the entire city.
Being able to do these types of specialized economic development projects has helped the city stay somewhat competitive. But when compared to a city such as Frisco, which has $40 million annually from its economic development sales tax revenue, Arlington is significantly handicapped.
This proposed quarter-cent will get the city close to the half-way point with Frisco’s revenue stream but it’s a whole lot better than remaining at zero.
With my limited space here, I can only summarize. Readers can see the entire presentation of the proposal from City Manager Trey Yelverton to the City Council at its Jan. 14 work session. It’s on the city’s website on the page where you find videos of council meetings.
As you will see, this proposal is not about transferring tax benefits to corporations and rich people. It’s about getting them to create jobs and invest in the city to everyone’s benefit.