Title
Consider and take action on an ordinance ordering a special election to be held on Saturday, May 4, 2019, for the purpose of submitting to the registered voters of the City of League City, Texas, a proposition to increase the municipal sales and use tax rate by one-fourth of one percent, and making other provisions related to the subject (City Attorney)
Staff recommends approval on first and final reading.
Background:
Approval of this item declares and orders a Special Election to be held in and throughout the City of League City (the "City") on Saturday, May 4, 2019. The City will submit to the qualified and registered voters of the City a proposition for the imposition of a sales and use tax of one-fourth of one percent.
The sales and use taxes imposed by political subdivisions within the City are comprised of the City’s local sales and use tax (1.00%), the City’s additional sales and use tax for property tax relief (0.50%), and the sales and use tax imposed by the City of League City Section 4B Industrial Development Corporation (0.25%).
The combined rate of all sales and use taxes imposed by the City and other political subdivisions of the state having territory in the City currently equals one and three-quarter percent (1.75%), which allows the City to increase its local sales and use tax rate by one-fourth of one percent (0.25%) before reaching the state law combined cap of two percent (2.0%).
Chapter 321 of the Tax Code provides that a municipality may call an election on the question of increasing the sales and use tax rate.
CONTRACT ORIGINATION: N/A
Attachments:
1. Data Sheet
2. Proposed Ordinance
FUNDING
{x} NOT APPLICABLE
STRATEGIC PLANNING
{x} Addresses Strategic Planning Critical Success Factor #1: Develop and Maintain City Infrastructure