When Buda voted in 1999 to become "damp," meaning that some alcohol sales were allowed, the city's sales tax revenue more than doubled in one year. Now city leaders are hoping the recent passage of Proposition 1, which will allow bars and liquor stores in the city limits, will have a similar effect.
The proposition passed Nov. 6 with 79 percent of the vote and will allow businesses to apply for annual liquor store permits for $1,501 and beer and wine permits for $673, as opposed to the old mixed-beverage permit, which was $6,602. Kyle passed a similar law during its election in May.
John Hatch, a partner with Texas Petition Strategies, headed the effort in 1999 and worked on the most recent proposition. After the 1999 election, H-E-B moved into town, and according to figures from the state comptroller, Buda's annual sales tax revenue jumped from $451,793 in 2000 to $978,905 in 2001.
"It's not just beer and wine," Hatch said. "When the grocery store has to make room for beer and wine, well, somebody has got to deliver that now. And when you've got this many places now delivering, they've got to hire more drivers, they've got to hire more stock boys, and those people pay taxes and those people buy groceries, and it multiplies."












