Sales Taxes Expiring: City Council Unveils New Plan

Sales Taxes

On Thursday, the Corpus Christi City Council convened a special meeting to outline a new strategy for utilizing the city’s expiring Type A Sales Taxes. This decision marks a significant step after voters rejected the previous attempt to repurpose the taxes last November.

Voter Rejection and Community Outreach

Last year, the City Council proposed allocating funds for repairs and enhancements to the American Bank Center complex, which included a potential headquarters hotel. Voters overwhelmingly rejected this proposal, partly due to the lack of a term limit for this use. Corpus Christi has two 1/8 cent sales taxes: one for the American Bank Center debt and maintenance, expiring in September 2025, and another for the Seawall debt and maintenance, expiring in March 2026.

Following the failed attempt, the city engaged in extensive community outreach to gather input on allocating funds. Officials distributed a survey asking residents to rank their highest-priority projects.

“The survey should be an eye-opener for all of us,” stated Councilwoman Sylvia Campos, reflecting the importance of public opinion in shaping the new proposal.

Prioritizing Street Improvements and Flood Control

Survey results revealed that street improvements were residents’ top priority. In response, the City Council proposed continuing the 1/8 cent sales tax for the Seawall and allocating additional funds to flood control structures, city-wide stormwater and flood control, drainage, and coastal resiliency projects.

Regarding the other 1/8 cent tax currently designated for the American Bank Center (A.B.C.), the council proposed splitting the funds: 50% for maintenance and improvements to the A.B.C. and city-owned facilities in the S.E.A. District. These facilities include the Corpus Christi Museum of Science and History, the Art Museum of South Texas, the Texas State Museum of Asian Cultures and Education Center, the Harbor Playhouse, and the Water Garden.

Supporting Local Businesses and Road Improvements

Councilman Everett Roy emphasized the economic benefits of including the A.B.C. in the tax plan. “When we have events at the American Bank Center, when we have events in the downtown area, their business prospers by at least 30% on those days,” he noted, highlighting the positive impact on downtown businesses.

The remaining 50% of the tax would go towards commercial and industrial road improvements. Mayor Paulette Guajardo acknowledged the community’s desire for residential street repairs but clarified, “We all want residential streets. We know that. So, you cannot include residential streets in reauthorizing this sales tax vehicle.”

The plan includes removing several commercial and industrial road projects, totaling $35 million, from Bond 2024 to address the demand for residential street repairs. The bond money would then be redirected towards residential street repairs.

Ensuring Prioritization and Term Limits

If voters approve the sales tax plan, the industrial and commercial road projects will receive funding from the sales tax and take priority over other projects. Both tax allocations will have 20-year term limits and will be reauthorized as Type B Sales Taxes.

The City Council plans to finalize the ballot language and place it on the November ballot during their next meeting.

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