Hutto Fire Rescue approves new sales tax sharing agreement with city of Hutto

The board of commissioners for Williamson County Emergency Services District No. 3, also known as Hutto Fire Rescue, approved a proposed agreement to share sales tax revenue with the city of Hutto.

The overview

WCESD 3 will share a portion of local sales tax revenue generated from certain properties annexed into the city of Hutto to help support infrastructure needs. The agreement establishes a 60/40 allocation of certain local sales tax revenues, with 60% going to the city of Hutto and 40% to WCESD 3.

The agreement replaces and clarifies a prior agreement expiring in 2027, and requires the city’s share to be used solely for emergency response infrastructure improvements, including fire protection water systems and roadways designed for fire apparatus.

WCESD No. 3, which serves Hutto Fire Rescue, collects a 2% sales and use tax in areas outside city limits to fund fire stations, apparatus and staffing, as approved by voters in 2016. Under Texas law, an ESD may, but is not required to, share a portion of that revenue with municipalities for newly annexed properties.