Street Sales Tax 2024-2034

Thank you Abilene residents for passing the 0.25% sales tax levy for the Local Street Improvement Program in November 2023. This tax played a crucial role in funding the improvement, repair, and maintenance of the city's streets from 2013-2023, and will continue to do so from 2024 - 2034. The Local Street Improvement Program is vital for the overall well-being and development of the community!

We understand the importance of transparency in showing what this tax does for our community, and this page will do just that! This page will provide information about upcoming street improvement projects, the cost, the funding sources, and of course before and after pictures. Updates will be made directly to this site.

This webpage is maintained by the City and will serve to keep the community informed of anticipated stages and important dates of this project. All dates are tentative and subject to change as projects progresses. Updates will be made directly to this site. It is encouraged to check back regularly or register for notifications to stay informed.

Why is a special sales tax for streets better than using property taxes?

Broad-Based Revenue Source: A special sales tax is not limited to property owners within the city limits. It generates revenue from a broader base, including residents, visitors, and tourists who shop or spend money in the city. This diversification of revenue sources reduces the burden on property owners and spreads the cost of infrastructure improvements more equitably.

Visitor Contribution: Sales taxes are particularly advantageous because they are paid not only by residents but also by visitors. This means that tourists who come to the city for various reasons, such as tourism, shopping, or dining, contribute to funding local street improvements. This can help alleviate the financial burden on residents and property owners while still addressing the city's infrastructure needs for residents and visitors to enjoy.

Economic Growth: A thriving local economy, supported by retail sales taxes, can contribute to economic growth and job creation. When people visit the city and spend money, it can stimulate local businesses, generate sales tax revenue, and potentially lead to additional investments and development in the community.

Voluntary Participation: Property taxes are obligatory for property owners within the city limits, while sales taxes are generally voluntary. Property owners have no choice but to pay property taxes, whereas individuals have some control over how much they contribute to sales tax revenue based on their spending habits.

Revenue Stability: Sales tax revenue tends to be less volatile than property tax revenue because it is influenced by a broader range of economic activities. Property values can fluctuate significantly due to various factors, whereas sales tax revenue is influenced by both residents and non-residents and is less susceptible to sudden drops in property values.

It's important to note that the choice between property taxes and sales taxes should be made carefully, considering the specific circumstances and needs of the community. Both tax sources have their advantages and disadvantages, and the decision should align with the local government's goals, budgetary constraints, and the preferences of the community.