New Boston leaders seek Yes vote for upgrades without more taxes

BowieCCT1's picture

The City of New Boston has called an election for November 6, 2017 asking taxpayers to re-allocate a portion of the sales tax being collected. The maximum sales tax rate in the state of Texas is 8.25% and New Boston Texas currently has a sales tax rate of 8.25%. 
If the proposition passes, the city will create a second Industrial Development Corporation that is a Type B Corporation. This sales tax adjustment will not change the total sales tax rate, it will only re-allocate a portion of the sales tax from the Type A Corp to the Type B Corp. 
Currently, the New Boston Special Industrial Development Corporation (NBSIDC Type A) can only fund projects that create or retain primary jobs and certain infrastructure expenditures. Creating a second corporation that is a Type B corporation allows the City to spend money on projects that improve the quality of life of its citizens, something that cannot be done with the Type A tax. Having both Types of Corporations gives the city the ability to do more for the taxpayers.
The breakdown of the current sales tax rate is as follows:
•State of Texas           6.25%
•City of New Boston  1.00%
•Bowie County            0.50%
•NBSIDC Type A          0.50%
•TOTAL                         8.25%

The breakdown of the PROPOSED sales tax rate is as follows:
•State of Texas           6.250%
•City of New Boston  1.000%
•    Bowie County            0.500%
•NBSIDC Type A          0.375%
•NBSIDC Type B           0.125%
•TOTAL                          8.250%
Voting FOR the proposition will allow the City to expend money on improving the existing parks as well as downtown parking, lighting, sidewalks and various other projects that it cannot do now. 
This rate re-allocation will HAVE NO EFFECT on the total tax rate.
 

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