The Levelland City Council met on Monday, Feb. 9, and approved a method that changes local sales and use taxes that fund the Economic Development Corporation for qualified voters of Levelland.
City council will abolish the current 0.375% type A EDC sales tax and increase Type B EDC by 0.375% in Ordinance 1112. This doesn’t change the total taxes collected, but changes how taxes will be used.
Type A EDC has more restricted guidelines and is primarily used for projects related to job creation or retention, manufacturing, industrial development, research, and related areas. These funds are generally limited to city-focused economic projects. Type B EDC’s field is broader and more flexible. Type B accounts for all of Type A’s focuses, including community development, public spaces, sports facilities, public safety, housing, and other quality of life improvements.
Any city located in a county with a population of less than 500,000 can impose a Type A tax if the new combined local sales tax rate does not exceed 2 percent. Levelland will change Type A to 0% and add those funds to Type B, which is now at 0.625%.
Reducing Type A to 0% doesn’t mean funds won’t be spent on Type A-related business, but it broadens what the city can spend money on.
The purpose of the council meeting was to consider and approve Ordinance 1112. A special election will be held on May 2 to officially process the change if approved by the voters of Levelland. This would only be implemented if voters pass the ballot on May 2, and no changes will take effect until then.
The idea is to give Levelland the ability to use taxes for a wider variety of community and economic development projects. This allows for spending on matters more important to the people.