You could be paying more at the cash register soon, but it's really up to you. If you do vote for the 3/8 cent sales tax increase, what does that mean? It means that every $8.00 you spend, you're ultimately spending .03 extra cents.
There are two major affects from the proposed sales tax increase. It will help bring more jobs to Lubbock and at the same time offer relief for property tax payers.
According to Mayor Marc McDougal's plan, the 3/8 cent sales tax increase is broken up two ways. 1/8th of the increased sales tax will go toward economic development to Market Lubbock Inc. The money will generate $3.3 million. Then the remaining taxes, which is one fourth, will go toward property tax reduction. More than $6 million will generate for tax relief there, bringing your property taxes down by 15%.
Vickey Hoffman, owner of JHoffman's clothing store says she supports the proposed sales tax increase if it means lower property taxes. "Taxes aren't fun. But I do believe in a sales tax increase across the board. We have to raise that money for our city," she said.
Take a look across the state. Comparable cities like Midland/Odessa, Wichita Falls, San Angleo and Amarillo, those cities all charge an 8.25 cents in sales tax. Whereas Lubbock right now charges 7.87 cents.
Chamber of Commerce Board Chairman Kevin McMahon says Lubbock will just be up to speed with the rest. "The other cities that you see there have a 8.25 % rate generally speaking 3/4 of their tax went to economic development and only 1/4 went to property taxes," said McMahon.
The city council on Wednesday will set a date for a public vote to approve a 3/8th cent sales tax increase. More than likely, it will be on the November ballot.