HHaven, ESD tax issues earn voters’ approval

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  • ESD 2, including Cassie VFD (pictured here), and ESD 5 approved sales and use taxes of two cents in their jurisdictions. Contributed
    ESD 2, including Cassie VFD (pictured here), and ESD 5 approved sales and use taxes of two cents in their jurisdictions. Contributed
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A trio of new sales tax issues were approved by voters in three Burnet County jurisdictions during complete but unofficial results Tuesday night.

Highland Haven voters approved a two-cent sales and use tax within city limits by a 16-vote margin, 153-137. While there are not many businesses located in Highland Haven, the measure does also affect sales and use tax on items purchased online.

“We only have one retail business here, but we do have a lot of delivery business that comes in and that is impacted as well by a sales and use tax,” Kelley previously told The Highlander.

Meanwhile, voters in both Emergency Services District No. 2 (Cassie VFD) and ESD 5 (East Lake Buchanan VFD) approved sales and use tax propositions which will allow them to levy a two-cent sales tax in their jurisdictions. ESD 2 voters approved their measure by a 382-151 vote, while ESD 5 voters gave theirs a thumbs-up by a 463-311 margin.

In order to adopt a sales and use tax, a local taxing jurisdiction must hold an election on the first uniform election date after the election is called and the measure must be approved by a majority of voters within the jurisdiction.

Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services. Local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can also impose up to two percent sales and use tax for a maximum combined rate of 8.25 percent. Taxing entities rely on sales and use taxes to help provide an additional source of revenue other than property taxes.

Six cities in Burnet County currently have sales and use taxes — Marble Falls, Burnet, Granite Shoals, Horseshoe Bay, Cottonwood Shores and Bertram. The first four collect at a rate of two percent, while Cottonwood Shores and Bertram only collect 1.5 percent.

ESD 2 and ESD 5 now join four other emergency service districts in the county — ESD 4, ESD 6, ESD 8 and ESD 9 — in collecting a two-cent sales tax.