A sales tax reauthorization is on the ballot in Flower Mound. Here’s what it means.
Proposition A on the Nov. 3 ballot is for Flower Mound voters to decide if they want to keep adding an extra .25 percent in sales tax for the next four years to help fund street maintenance.
Proposition language:
The reauthorization of the local sales and use tax in the Town of Flower Mound, Texas at the rate of one-quarter of one percent (1/4 of 1%) to continue providing revenue for maintenance and repair of municipal streets. The tax expires on the fourth anniversary of the date of this election unless the imposition of the tax is reauthorized.
The background:
The state sales tax is 6.25 percent. Municipalities may tax purchased goods up to another 2 percent – 1 percent can go to the general fund and another 1 percent can go toward a specific purpose. In Flower Mound, the latter includes .25 percent each for fire control, crime control, parks and recreation, and street maintenance. The parks and recreation portion does not need to be reauthorized, but the other three do.
Voters first authorized the street sales maintenance dedicated sales tax in 2007. It has been renewed every time it has been on the ballot. The last time was in 2022.
What it has funded:
Since 2022, the authorization has brought in $19.8 million that has been used on the personnel needed to maintain the streets, general maintenance costs, and 16 major street projects. They include Flower Mound Road panel replacement from Long Prairie Road to Quail Run Road ($3.3 million), Lakeside Parkway panel replacement ($3.19 million), and the reconstruction of the Timber Creek Road and College Parkway intersection ($600,000).
In the last fiscal year, the Street Reconstruction Fund added $4.6 million from the additional sales tax.
How it compares to other cities:
Flower Mound had one of the lowest sales tax rates in north Texas in 2007, with most neighboring cities at the maximum 8.25 percent and Flower Mound at 7.25 percent.
Currently, Flower Mound is in line with other municipalities. Argyle, Roanoke, Highland Village, Grapevine, Denton, Lewisville, Coppell, and others have a sales tax rate of 8.25 percent.
Who is paying the tax:
A 2022 election brochure said 61 percent of sales tax collected in 2021 came from residents and 39 percent was collected from non-residents.
What happens next:
If the proposition fails, the sales tax for Flower Mound will drop to 8 percent. If it passes, it will remain at 8.25 percent.