The city first passed the half-cent sales tax in 1991. It was renewed in 2001 and will expire in 2011 if a renewal is not passed on March 27.
Over the last 10 years, the tax has generated $24 million. However, Finance Director Milton Stiebing said that number is inflated and not an accurate assessment of how much the tax will normally bring in during a 10-year period because that number includes the large sales tax revenue jump the area experienced when people were rebuilding homes and replacing belongings in the years following Hurricane Katrina.
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He estimates the tax, if the renewal is approved by voters, will bring in $20-$22 million in the next 10 years.
This tax is dedicated to streets and can only be used for streets, sidewalks, bike paths, bridges and roadside drainage.
Most of the money the city receives from this tax is used to pay for the annual street improvement program, which pays to resurface the streets in the city.
This is one of three sales taxes collected in the city.
A 1-cent sales tax, dedicated to paying off bonds used to pay for water and sewer improvements will be up for renewal in 2019. Excess money generated from this tax beyond what is needed to pay off the bond debt is used to fund water or sewer improvement projects.
The third tax, a 1-cent tax, goes toward the general fund and helps pay for the daily operations of the city. It is a permanent tax that does not have to be renewed.
Stiebing said the city’s bond attorney has mentioned making the sales tax dedicated to streets a permanent tax as well since it is an ongoing and recurring expense.
However, he said Interim Mayor Edward “Bubby” Lyons opted to not take that route during this election because he is unsure in this economy what the sales tax outlook will be in the coming years.


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