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Ore City voters set to consider sales tax hike

By STAFF

On May 12 Ore City residents will have the opportunity to decide if the City should begin collecting an additional 0.25 percent in sales tax to be used for the promotion and development of new and expanded business enterprises. Only those cities with room under the 2-cent local sales tax cap are eligible to adopt the tax. The tax expires after four years unless a new election is held to reauthorize the tax.

Ore City’s current sales tax rate is 8 percent, and if the proposed additional 0.25 percent is adopted, it would become 8.25 percent. Other cities in the area that have adopted the tax include Gilmer, Pittsburg, Gladewater, Longview, Avinger, Marshall and Mount Pleasant.

The additional sales tax would generate about $14,000 per year, and may also be used to promote a wide range of civic and commercial projects. The funds generated by the tax are governed by the board of directors of the economic development corporation and by the city council.

This additional 0.25 percent tax was authorized by the Texas Legislature by amending the Development Corporation Act of 1979, by adding Section 4A and Section 4B in 1991. To read the bill in its entirety, see the State of Texas website at www.capitol.state.tx.us

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