The Granite Shoals City Council is renewing its sales tax commitment to the city’s roads and streets fund.
During a regular meeting January 28, council members voted to continue distributing a 1 percent sales tax into the fund.
“It’s a special-called sales tax, a reauthorization,” City Manager Jeff Looney said.
He noted the council must vote on the 1 percent sales tax to the roads and streets fund. This funding is different from the $3 million street and road bond voters approved in November 2018.
“The bond is money we pay through property taxes,” Looney said. “Sales tax comes from sales in the city, from people buying things.”
The general sales tax in the state of Texas is 6.25 percent. Municipalities can collect up to 2 percent for a local sales tax, which adds up to a total 8.25 percent sales tax.
In Granite Shoals, 1 percent of the local sales tax goes to the general fund and the other 1 percent is destined for the street maintenance fund.
Currently, that fund contains $150,000. Looney said the city projects the fund to have $172,000 by the end of the 2020 fiscal year.
“It’s for materials and building roads, not salaries,” Looney said of the fund money.
Road improvements include adding curbs, shoulders, and other upgrades, he added.
In other business, councilors also approved an increase to waste management and trash pickup fees.
Looney called the $22.03 per month “manageable” for residents, who will see about a $1 jump in their monthly bill.