Lyford voters to decide Sales tax issue
In the November 2 general election Lyford voters will help choose the next governor of Texas and other state wide officials as well. On the ballot they will also find two local option issues to vote on.
Most Texas cities charge a 2¢ local sales tax. When added to the State Sales Tax the amount comes to 8.25¢ collected for each dollar spent. The 2¢ collected is returned to the city to spend for local infastructure and qualify of life issues.
But, in Lyford's case the city only collects l¢ in local sales tax plus the State's 6.25¢ for a total of 7.25¢ for each dollar spent by shoppers.
Ray Bustamante and Sergio Gomez of E.S.S.G. gave a powerpoint presentation to council members Monday evening, avocating the idea of letting the public decide on the sales tax increase.
"They are already used to paying 2¢ when they shop in Raymondville, Harlingen, or other Valley Cities," said Bustamante.
The city has collected $18,000 in local sales tax during the first seven months of the 2010 fiscal year. If the 2¢ sales tax rate had been in place the city would have $36,000 instead of half that amount.
If voters approve the increase the city will create an economic development corp. (EDC) with appointed board members. Actually, there will be two boards, one for industrial projects, and the other dedicated to tourism, parks and quality of life.
The company is asking the city for $4,000 to promote the passage of the election. Bustamante suggested that his company will print flyers in English and Spanish advertising the benefits of the increased sales tax, stuff them in utility bills and mail to city residents.
Council members balked at the $4,000 cost of the contract but authorized the mayor to negotiate with the company. The issue was tabled until another meeting.
The other local issue on the ballot is a plan to increase the terms of city council members from 2 years to 3 years.








