Mid City Times

The Arlington City Council voted on Tuesday, Feb. 4, to include a proposition for additional city sales and use tax on the special election ballot for May 2.

The current sales and use tax in Arlington is 8 percent and if the proposal is adopted by voters, the tax would increase to 8.25 percent. The tax increase would fund an Economic Development Corporation, which would take on projects that the Texas Local Government Code authorizes. 

The Arlington Economic Development Corporation was formed in 2015 and has since remained without the funding it needs. The proposed tax would provide the corporation with the funding needed to complete authorized projects. 

Chapter 505 of the Texas Local Government Code authorizes projects that create jobs with manufacturing and industrial facilities, military facilities and research and development facilities. It also authorizes the creation of small warehouses, distribution facilities, regional or national corporate headquarters and other similar facilities. Other authorized projects include, but aren't limited to, job training, infrastructure, development and improvement, affordable housing and expanding businesses. 

The proposed tax could potentially bring in millions of dollars for the city sales and use as well. In 2019, approximately $17.2 million was produced from the quarter-cent sales tax for street maintenance. 

If the tax is approved, Arlington residents would be paying approximately $1.25 more in sale tax per month or $15 a year, the U.S. Bureau of Labor Statistics Consumer Expenditure Survey said. The tax collected would go towards growing businesses and developing land, the Comprehensive Plan, which was approved in 2015 by Arlington City Council, said. 

During the May 2 special election, Arlington voters will be asked to vote in favor or against the proposition.

"The adoption of a sales and use tax at the rate of one-fourth of one percent to undertake such projects, as authorized by Chapter 505 of the Texas Local Government Code, as amended, that promote and develop new and expanded business enterprises, community redevelopment, provide and encourage employment, diversify the economy, and promote the public welfare; including, but not limited to, projects that incentivize private capital to rehabilitate urban blight and decay," the proposition will say on the ballot, Patch reported.

Arlington wouldn't be the only city with an Economic Development Corporation. In 2017, 730 economic development corporations existed in the state of Texas with 113 of those being in North Texas, the 2016-2017 Texas State Comptroller's Biennial Economic Development Corporation Report said. 

Some cities that have an Economic Development Corporation in North Texas are Grand Prairie, Kennedale, Dalworthington Gardens, Pantego and Mansfield. 

If the proposed tax passes, members would be elected to the Arlington Economic Development Corporation Board of Directors. The Arlington City Council would appoint seven members who would serve a two year term. 

More information on the sale tax can be found at the Texas Comptroller of Public Accounts website.