PALESTINE, Texas (Feb. 28, 2017) – Voters in the City of Palestine will have the opportunity to decide if a portion of the city’s sales tax will move towards infrastructure.
The Palestine City Council voted Monday to call for a special election on the May 6 ballot to dedicate .125 percent (1/8th percent) of sales tax in the city of Palestine to repair and maintain existing city streets.
There will be one proposition on the May 6 ballot. Proposition 1 asks if voters want to move .125 (1/8) percent of sales taxes set for property tax relief to repair and maintain existing city streets for four years.
According to the state comptrollers office, sales tax in the City of Palestine is 8.25 percent, allocated into three areas. The state receives 6.25 percent, while Anderson County receives .5 percent. The City of Palestine receives the final 1.5 percent of the sales tax.
In 1988, voters decided to enact the 1.5 percent tax into two areas, funding city government and property tax relief. In 1998, that 1.5 percent was split into three ways. Currently, 1 percent of the tax funds city government, while .25 percent funds economic development and .25 is set aside for property tax relief.
If voters approve Proposition 1, the money designated would go into a dedicated fund that can only be used for maintenance and repair of municipal streets. Property taxes could rise as a result of Proposition 1.
Through direction of the council, the city will hold Town Hall meetings to discuss the proposed ballot measures. Those Town Halls will be announced at a later date.