For both cities, a certain percentage of sales tax has been collected and set aside each year for the purpose of maintaining roadways. In order to continue collecting these taxes, the cities must receive reauthorization from voters every four years, according to the Texas Comptroller.
Lakeway
The next election in which reauthorization is required will be held May 3, for both cities. Ballot language for both road tax elections can be found on Bee Cave and Lakeway’s city websites.
In Lakeway, the amount of sales tax collected for the purpose of maintaining and repairing municipal streets is 0.25%, according to ballot language. This amount has been collected since 2001, with residents having voted to continue the collection every four years since then, according to city documents.
On top of the 6.25% sales tax rate that the state of Texas charges, cities are authorized to add up to 2% of additional taxes, Lakeway City Manager Joseph Molis said. In Lakeway, 0.25% goes to Travis County Community Library, and of the remaining 1.75% left after that, 0.25% goes to the city’s road tax fund.
The fund is primarily used for repaving projects or spot repairs on streets around Lakeway, Molis said.
“Basically, the Public Works Department has a list of every street in Lakeway, and they're on a rotation because streets have a lifespan averaging about 20 years,” Molis said. “Every year we try to do one-twentieth of the streets in the city. And so we use that fund to help pay for those projects. Mostly, it's repaving.”
Bee Cave
In Bee Cave, a slightly lower percentage of sales tax—0.125%—is collected for street maintenance funds.
“Bee Cave has been doing this for at least the last two decades, with the road tax fund,” Mayor Kara King said at a Feb. 11 meeting. “State law requires every four years that we reauthorize it, so it’s not changing how we allocate sales tax, it’s not adding any tax, it’s not taking away any tax, it’s just keeping one-eighth of 1% of our sales tax in a road fund.”
What else?
Aside from the road tax reauthorization, Lakeway will also ask its residents to vote on six other proposed charter amendments. A full list of these propositions can be found on the city’s website.
In Bee Cave, residents can also expect to see a ballot item regarding approval of a public safety building—a city-led initiative to develop and construct a new shared space for both Bee Cave Police and Lake Travis Fire Rescue.
