The city of Liberty Hill will hold a special election May 2 to reauthorize the city’s 0.25% Street Maintenance Sales and Use Tax, which will be used to maintain city streets, according to a presentation to City Council on Feb. 11.
The details
Josh Armstrong, finance director for the city of Liberty Hill, told Community Impact that regardless of the election outcome, the total sales tax in Liberty Hill will remain 8.25%.
“If the funding were to lapse, it would not reduce the total sales tax rate,” Armstrong said in the presentation to council members. “The difference would then just be reallocated to the [Emergency Services District] in our area.”
Voters last approved the Street Maintenance Sales and Use Tax in 2022 for a four-year period that is set to expire in September unless reauthorized. If voters reauthorized the tax, it would remain in effect for another four years. The funds can only be used for maintenance of city roads, not county or state roads, Armstrong said.
On the ballot
The language on the ballot will read:
“The reauthorization of the local sales and use tax in the city of Liberty Hill at the rate of one-fourth of one percent to continue providing revenue for maintenance and repair of municipal streets. The tax expires on September 30, 2026 of this election unless the imposition of the tax is reauthorized.”
Of note
According to city documents, the state imposes a 6.25% state sales and use tax on all retail sales, leases and rentals of most goods and taxable services. Local taxing jurisdictions, like the city of Liberty Hill, can also impose up to 2% sales and use tax for a maximum combined rate of 8.25%. The 0.25% Street Maintenance Sales and Use Tax is a part of the total 2% rate that the city may impose.
