Funding
Using Sales Tax to Promote Economic Development
The sales tax for economic development has been one of the most popular and effective tools used by cities to promote economic development. Although authorization for the local option tax has been in effect only since 1989, over 400 cities have levied an economic development sales tax. The City of Perryton adopted a section 4A economic development sales tax of 1/2 cent which results in about $300,000 per year. The types of projects permitted under Section 4A include the more traditional types of economic development initiatives that facilitate manufacturing and industrial equipment for projects such as industrial and manufacturing facilities, distribution and warehouse facilities, business related airports, port related facilities, recycling facilities, and closed or realigned military bases.
