The new sales tax would be 8.25% with the change, a 0.75% increase from the 7.5% it currently is.
What’s happening
On Jan. 22, Argyle Town Council voted unanimously for an ordinance to be written up calling for a special election to increase the sales tax.
“I was very surprised to find in the town's ordinances that the sales tax levy within the town of Argyle, and in this case, in the special purpose annex area, is only one penny when the town's authority is two pennies,” said Argyle Town Attorney Brenda McDonald.
Currently, Argyle levies 2% of sales tax within the town limits and 1.25% within the Belmont District. The agreement with the Belmont Fresh Water Supply District No. 2 splits the sales tax between Argyle, the district and the Argyle Municipal Development District. The Municipal Development District collects 0.25% and the Belmont Fresh Water Supply District No. 2 collects 0.50%, leaving 0.50% for the town.
With the 0.75% increase, those shopping at the Harvest Commercial area will pay more in sales taxes with .375% going to Argyle, and .375% going to the district. The increased sales tax levy will only be within the commercial area of the district's Harvest development due to the town's limited annexation of the property.
With the increase, Argyle will collect a total of 0.875% in sales tax income from the Belmont District, the Municipal Development District will still get 0.25% and the Belmont District will receive 0.875% out of the 2% allowed for local sales tax collections.
If the tax increase is approved, the town estimates the new sales tax will bring in over $100,000 in revenue for the town, according to city documents.
Mayor Pro Tem Ronald Schmidt asked McDonald to pull some numbers and came up with an estimation for how much revenue the new sales tax will add, which will then be split between Argyle and the Belmont District.
“So what we're doing, ultimately, if we get the voters to approve it, is to go from an approximate $300,000 in sales tax to actually a total of $675,000,” Schmidt said. “So you have a $375,000 increase by making this change.”
What’s next?
The town attorney will have to draft an ordinance and bring it to the council before Feb. 14, the last day for a special election to be called in May.
