In January, the council voted to put the sales tax increase on the ballot for the May election, but the proposition failed to pass.
The gist
The proposed tax increase in the Harvest commercial area in Belmont Fresh Water Supply District No. 2 would increase the general sales tax rate in the Harvest Center by 0.75%, bringing the area's tax rate in line with the rest of the town’s 2% tax rate, per town documents.
Town documents state the special election will cost the town between $9,000-$12,000, and the revenue from the tax increase, if it passes, is expected to net the town more than $100,000 annually.
Some background
The maximum sales tax a municipal government can legally charge is 2%, according to the Texas Comptroller’s website and town documents.
Between the state sales tax of 6.25% and local sales tax of 2%, the increase would bring Harvest’s total sales tax rate up to 8.25%, consistent with the rest of the town.
Diving deeper
Currently, Harvest pays 1.25% in city sales tax—1% for the Argyle general sales tax and 0.25% for the municipal development district, town documents state.
Harvest does not pay into Argyle’s crime control and prevention or street maintenance special use taxes, which add up to 0.75%, per town documents. The tax increase would raise the general sales tax rate by 0.75%, and the town would split half of the revenue increase with Belmont Fresh Water Supply District No. 2, Mayor Ronald Schmidt said at the meeting.
What they’re saying
Town Manager Mike Sims and Mayor Pro Tem Cynthia Herman both noted a lack of communication from the town to the community about the tax increase when it previously appeared and failed on the ballot.
“We had very little public information from what I could tell," Sims said. "It predates me, but I saw not a lot of anything."
Herman pointed out the seven-vote margin—553 votes for and 546 against—when the proposition failed.
“For it to fail by [seven] votes with zero information, if we did a good enough job letting folks know what it is and what it means ... It’s going to give people the knowledge and the power that they need to feel more comfortable voting yes,” Herman said.
Looking ahead
Argyle officials plan to coordinate with the Denton County Elections Administration to hold the election Nov. 4.
