(Seguin) — Guadalupe County is one step closer to possibly creating a new County Assistance District (CAD), but it won’t proceed until it hears from the public first.
During its most recent meeting, Guadalupe County Commissioner Pct. 3 Michael Carpenter made a motion to set dates for public hearings to discuss the potential formation of an additional County Assistance District. The motion, seconded by Commissioner Germann, passed unanimously with a 5-0 vote.
The public hearings are scheduled for August 5 and August 12 during regular Commissioners Court meetings.
County officials say these hearings will provide residents an opportunity to weigh in on whether the county should call an election to formally establish the district.
Originally bringing the item to the table was Commissioner Carpenter. He says if approved by voters in a future election, the County Assistance District would be authorized to collect a local sales tax — up to a maximum of 2 percent combined with other local taxes. He says these funds would specifically be used to fund improvements such as roads, law enforcement services, libraries, public health initiatives, and economic development.
“It is sales tax based. So, it is a consumption tax rather than a property tax. That means that anybody that is traveling through and by the way, it would be only in the unincorporated areas of the county, within each city, within the county — 8.25 percent sales tax is already in place. It’s only in the unincorporated areas of the county where we are at a 6.75 percent, and therefore there is one and a half cents below the state maximum of 8.25 percent. Anybody passing through and spending dollars in the unincorporated areas of our county would contribute to this particular tax mechanism, as well, of course, as, our residents that purchase things in the unincorporated portions of the county,” said Carpenter.
Carpenter says it’s not a mechanism that would raise large amounts of money, but it is a mechanism where they can fund certain areas of county business and not add to the current burden of property taxes.
He says if approved, it could generate an additional $1.5-$1.8 million.
“We have a half cent currently throughout the county. Right? And this would be going up to the maximum to a unit. We have a uniform 8.25 throughout the county, regardless of whether you’re in the city limits or not,” said Carpenter.
According to the Texas Comptroller’s Office, the creation of a CAD must be approved by voters. Following next month’s public input, commissioners say they will decide at that time whether or not they want to move forward with the election.
To learn more beforehand, visit Comptroller.Texas.Gov.