By Devin Monk
reporter@ltview.com
Voters in The Village of The Hills overwhelmingly approved two sales tax propositions in a Nov. 3 special election to secure a 3/4-cent increase in sales tax collection for the city.
Ninety percent of voters supported a 1/4-cent sales tax increase to maintain the public roads leading into and out of the gated community and around Serene Hills Elementary. Because it is a gated community, the Property Owners Association is limited to maintaining roads inside the community without the use of sales tax dollars.
Mayor Pro Tem J.R. Smith said The Village of The Hills also will lower its property tax at some point in late 2010 through a 1/2-cent increase in sales tax collection. Ninety-two percent of voters approved that measure.
These are the first sales taxes that will be collected in The Hills.
Every city, county, transit authority and special purpose district in Texas is allowed to impose a sales tax of up to 2 cents on every dollar collected in its boundaries, but a Lake Travis Community Library tax of 1/4-cent and Travis County EMS District 6 tax of 1 cent had carved out 1.25 cents on every dollar in The Hills.
Smith said the city prided itself on not having any sales taxes before, but its leaders realized the potential for being blocked from having any sales tax revenue generation in the future.
“All the sales taxes were going outside The Village. Suddenly, we realized we would be left out in the cold if someone else came along and got the [remaining] .75 percent,” he said. “Everybody realized what was happening so they voted overwhelmingly to keep the sales tax dollars in The Hills.”
If The Hills lost out on that revenue, it would be dependent on property taxes for revenue.
Smith attributed the higher voter turnout and support to the Friends of The Hills political action committee.
“[The results] indicated to me that the Friends of the Hills did a good job and the residents of The Hills are supportive of our efforts,” he said. “On behalf of the leadership of the community, we are definitely encouraged and pleased with the support of the community.”