25 years of Local Sales Tax for Economic Development Purposes

Local governmental entities can approve extra sales tax for economic development purposes, which Ray Perryman says has “enhanced the performance of the state economy.”

Perryman lists 3 reasons Economic Development Corporations, funded by this sales tax, are key to Texas economic growth: 

• EDCs increase job opportunities
• EDCs increase business investment, and
• EDCs increase tax receipts. 

Perryman lists 5 factors as to why an array of economic development options are crucial:

• Increase in labor and capital mobility 
• More sophisticated site selection process
• Increasing globalization
• Higher public scrutiny for businesses in debt and equity markets
• Use of site selection consultants

Midland Reporter Telegram