Round Rock voters to decide on sales tax change
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One item on the November ballot in Round Rock is designed to bring business to the city. Proposition 1 aims to expand the use of a half-cent sales tax beyond transportation projects.
In 1997, Round Rock was growing quickly, especially before toll roads connected the city. Since traffic was a major concern, the city authorized the use of a half-cent of sales tax to go toward transportation projects.
Thirteen years later, the city is still growing, but traffic is just one among many priorities.
Will Hampton with the City of Round Rock said the half-cent sales tax brings in about $13 million every year. He said the city would benefit if that money was used for economic development purposes.
"We'll compete with other cities where a company may have another plant for expansion. We may be competing to keep jobs," he said.
Proposition 1 would only expand the use of that half-cent sales tax. It would not affect tax rates.
Cedar Park adopted similar policy. The money helped fund the Cedar Park Center, a new skate park and even played a part in attracting a company to Cedar Park from Silicon Valley.
"We're able to use it for economic development, if there's a deal we want to bring a business here to Cedar Park or expand a company here in Cedar Park. It helps improve our quality of life," Cedar Park Assistant City Manager Jose Madrigal said.
The Round Rock City Council voted that if the proposition passes, 90 percent of the half-cent sales tax would still go toward transportation projects. The remaining ten percent would be set aside for other uses.