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Finance director explains sales-tax share that funds Type A economic development
Summary
Erica Solis explained how the city's 8.25% sales tax funds the Type A corporation (3/8 of a cent of the city's 2¢ collection) and said staff is projecting base sales-tax growth of 2% into 2027 before redevelopment receipts are layered in.
During her presentation, Erica Solis outlined how retail and online purchases taxed at 8.25% in Cedar Park are allocated across the city and to the Type A fund. "Of that amount, 2¢ is collected by the city and of that 2¢, the 3 8th of a cent is received by the Type A Economic Development Corporation to fund economic development initiatives," Solis said.
Solis said sales tax through May was trending about 1.19% over budget and that staff is conservatively projecting 2% base growth for 2027 before accounting for redevelopment receipts tied to Cedar redevelopment projects. She emphasized that Type A does not retain all redevelopment-related sales tax and that projections account for portions that will remain elsewhere in city accounts.
