economyEconomic Development

Call an Election

City voters must approve of this special, dedicated tax at an election held for that purpose. The election may be initiated:

• at the discretion of the city council; or
• by a petition signed by at least 20 percent of the number of voters who cast ballots in the most recent regular municipal election.

The city council must adopt an ordinance calling for the election at least 62 days before the election is held.

Ballot Language for the Economic Development Sales Tax

Under Type A

Ballot language for Type A corporations is found in Local Government Code, Chapter 504, sections 256, 257, 260 and 352:

For a city to adopt, increase or reduce the tax, the ballot must state:

"The adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of (insert amount) percent."

A city may also allow a vote on a ballot proposition limiting the length of time a sales and use tax may be imposed. The the ballot must state:

"The adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of (insert amount) percent to be imposed for (insert number) years."

A city may also indicate a specific project on the ballot to be funded with the sales tax revenue. In this case. The the ballot must state:

"The adoption of a sales and use tax for the promotion and development of (project description) at the rate of (insert amount) percent."

For a city to dissolve the Type A corporation, the ballot should state:

"Termination of the (name of development corporation)."

Under Type B

Except for specific projects such as water supply facilities, water conservation programs and cleanup of contaminated property, the Development Corporation Act does not provide specific ballot language for Type B. City officials should consult with their city attorneys when drafting the ballot language under this section.

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Need Help?

For additional information, contact the Data Analysis and Transparency Division via email or at 844-519-5672.