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Proposition A will reallocate the sales tax in Whitehouse, affecting how it’s distributed, and it will change how our sales tax collections are reported to the State.
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This election is needed for two reasons.
The City wants to change how the sales tax is reported to the State to be more transparent. Whitehouse taxpayers pay a ½ cent sales tax, which means that ½ cent of the 8.25 cents we all pay in sales taxes goes to help fund the City’s operations. When this ½ cent sales tax was created, it was categorized and reported to the state in a way that makes each dollar count for both sales taxes and property taxes. State regulations from Austin examine how much a city collects in property taxes and impose restrictions based on the amount collected and the population of the city. These regulations don’t consider cities, like Whitehouse, that categorize sales taxes as property taxes. This limits the city’s ability to take care of the needs of the citizens. Proposition A will allow the city to avoid burdensome regulations by simply reporting our current processes more transparently.
This initiative will direct more existing funds to economic development. In 2018, Whitehouse voted to allocate ¼ of the ½ cent sales tax to fund economic development. However, no change was made to how the remaining ¾ of this ½ cent was categorized. Prop A will result in half of the ½ cent continuing to go into the City’s general fund, just as it has since it was established, only now it won't also be counted as property taxes. The other half of the ½ cent will go towards economic development.
It’s when sales tax money is moved or adjusted from one use to another. It is NOT a tax increase.
It will not affect your tax rate or result in a tax increase. In fact, the City of Whitehouse is committed to decreasing the property tax rate, just as they have in the last two annual budgets.
The aim is to drive economic development, which could benefit local businesses.
The purpose of a “4B Corporation” is to give communities an opportunity to pursue projects that will attract and retain primary employers and improve the quality of life in a small community. They were first established by The Development Corporation Act of 1979 and are authorized through Texas Local Government Code, Chapter 501.
This is money the City uses for services such as repairing streets, employing fire and police and keeping parks clean.
By shifting these funds, the city gains more freedom to invest in projects that will improve our community. This could mean attracting new businesses, improving public services, and creating job opportunities.
Some state regulations from Austin look closely at how much property taxes a city collects and impose restrictions on cities based on taxes collected and the city’s population. These regulations don’t consider cities, like Whitehouse, that categorize sales taxes as property taxes. This limits the city’s ability to take care of the needs of the citizens. Proposition A will allow the city to avoid burdensome regulations by simply reporting our current processes more transparently.
You can vote during the upcoming November election at designated polling stations around Smith County. (The Whitehouse polling station will be at Whitehouse Methodist Church). See below for Early Voting and Election Day Schedules.