The need to diversify revenue is driving the Emergency Service District (ESD) 6 to take a proposition for implementation of a sales tax to area voters this May.
The proposition calls for one quarter of one percent of sales tax to be implemented within unincorporated areas in its 244-square-mile district.
ESD 6, which is the North Hays County Fire Rescue, serves approximately 35,000 people in the Dripping Springs city limits and the majority of the city’s extraterritorial jurisdiction (ETJ).
If the proposition is approved, roughly a quarter of one penny would be taxed on all taxable goods and services in areas of the district not already at the state maximum of 8.25 cents.
BE SURE TO VOTE
Early voting for elections in Hays County begins April 24.
Click here for a list of early voting locations.
ESD 6’s proposed amount would fall within two percent reserved for local governments within Texas’ 8.25 percent sales tax. Hays County collects one-half of one percent of sales taxes.
However, Scott Collard, ESD 6 chief, said they couldn’t implement a sales tax within the city of Dripping Springs, which currently is at the maximum 8.25 percent rate set by the state.
According to ESD 6, if the measure is approved, it could generate $160,000 annually that goes directly to the fire rescue.
“One person said … if the fire department is successful, people can self direct where their money goes,” Collard said. “The city doesn’t get it. The county doesn’t get it. It goes straight to funding fire rescue services.”
Should voters approve the proposition, ESD 6 would add a secondary source of revenue to the district’s coffers, Collard said. That, in turn, could allow the district to maintain and expand services for area residents.
According a pamphlet mailed to area voters, money could be used to help fund a planned $4.5 million fire station relocation and a $1.5 million ladder truck.
In addition, Collard said the proposition would be the first step taken by the district to “shift the burden” off of area taxpayers.
Currently, ESD 6 levies a tax of .795 per $100 property valuation. ESDs can levy up to ten cents per $100 valuation.
However, in a pamphlet sent out to area voters, the ESD’s board of directors chose to possibly administer a sales tax, instead of hiking its property tax rate.
Collard cited the ability to levy the sales taxes on services that cater to the wedding industry in Dripping Springs, which has the moniker of the Wedding Capital of Texas.
With more and more travelers going in and out of the area, Collard said levying the tax could help area residents.
“The transient population would offset the cost of business by buying goods in the district,” Collard said.
The district’s move would also allow it to keep up with the rapid growth, which has also led to rise in call volume, Collard said.
According to statistics provided by ESD 6, more than 2,100 emergency calls were made last year within the district. The average response time for ESD 6 was just over eight minutes.
“Growth is here and with it, our call volume is going up and cost is going up, so revenue has to go up,” Collard said.
Voters will decide ESD’s measure, which is listed as Proposition 1, on May 6.
What is an Emergency Service District?
Emergency services districts are political subdivisions of the state of Texas, like school districts or municipalities. ESDs are established by Article 48-e of the Texas Constitution with Chapter 775 of the Texas Health and Safety Code serving as the enabling statute. An emergency services district (ESD) can provide fire protection, emergency medical response, or both. There are currently over 300 ESDs in Texas in more than 90 counties.
Prop 1 by the numbers
- .2500: Amount of tax ESD 6 plans to administer on taxable goods and services in the district not already at the state max of 8.25 cents. if approved by voters
- $160,000: Sales tax revenue ESD 6 could bring in annually, if approved by voters
- .0795: Cents per $100 valuation ESD 6 levies in property taxes.
- $0: Amount ESD 6 is raising its property tax rate
- 35,000: Number of residents served by ESD 6
- 244: Number of square miles ESD 6 covers in western Hays County
- 2,136: Number of emergency calls ESD 6 responded to in 2016
