Cedar Park Leander Edition | April 2022

2 0 2 2 L O C A L V O T E R G U I D E

If voters approve Proposition A, Proposition B may allow the city to recapture the 1% sales tax that Capital Metro received. With an additional 1% city sales tax revenue, the city would create an economic development fund, provide public transportation services and improve city infrastructure. VOTE BREAKDOWN

MetroRail. And there is noth- ing in the works, just Œnding a bus that goes to Lakeline.” According to Capital Metro, Leander could, following the election, negotiate contracted service with it should the city pull out. PropositionB A major reason why the council members, both past and present, have questioned the partnership is because of the high cost of service. Every participating city in Capital Metro collects a 1% sales tax to provide service. In 2021, the city of Leander collected $9.8 million for Capital Metro with that 1% sales tax, according to the state comptroller. Contingent on the fate of Proposition A, Proposition B will ask voters to reallocate the 1% sales tax that Capital Metro receives back to the city once the net Œnancial obligation with the transit

authority is fulŒlled. Payback of that $42 million obligation could take four or Œve years, according to the city. The ballot itemwill ask vot- ers to approve a 2% general revenue sales tax, but this will not increase the current 8.25% sales tax rate in the city. The city already receives a 1% general revenue sales tax, so voter approval would reallocate the 1% sales tax to the city and create a total 2% general revenue sales tax. Council members unani- mously signed a resolution March 3 that speciŒes how the city would use the additional 1% general revenue sales tax. This includes creating a ded- icated economic develop- ment fund, providing public transportation services and expanding and enhancing critical city infrastructure.

No vote to Prop A


6.5% state sales tax + 1% city general revenue sales tax + 1% Capital Metro sales tax

Yes vote to Prop B

after the net Œnancial obligation is paid: 6.5% state sales tax + 2% city general revenue sales tax The obligation Leander could owe is estimated to be about $42 million and could take Œve years to repay.

Yes vote to Prop A No change to the tax breakdown

No vote to Prop B

after the net Œnancial obligation is paid: 6.5% state sales tax + 1% city general revenue sales tax A no vote to both propositions would e˜ectively lower the city’s sales tax by 1% after the obligation is paid back.


For more information, visit communityimpact.com .

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