Street Sales Tax Fund
~ Fund 110
Street Sales Tax Fund
In 2001 the Texas Legislature passed House bill 445 allowing cities to raise their local sales tax by one-quarter percent if the funds were dedicated to street maintenance and repair. The sales tax collected may only be used to maintain and repair municipal streets that existed when the tax was adopted. The tax may not be used on new streets built after the adoption of the tax.
Nassau Bay adopted the additional one-quarter percent local sales tax for street maintenance purposes on November 5, 2002. The tax became effective April 1, 2003. The tax expires every four years unless voters continue to approve the tax in a reauthorization election.
The City held the most recent reauthorization election on November 6, 2018, extending the sales tax to April 1, 2023. The City will hold its next election to renew this tax on November 1, 2022. Since the tax became effective in 2003, the City has collected over $2.3 million, all dedicated to improving and maintaining Nassau Bay's municipal streets.
In FY2022, the City will begin construction on a large city-wide paving project impacting over 30 locations in the City. This project is partially funded by the Street Sales Tax and partially by the Series 2021, Certificates of Obligation issuance. Current year revenue projections mirror the conservative projections for sales tax growth in the General Fund.