City ends personal property taxation

Clarendon Aldermen killed the personal property tax during their regular meeting last Thursday, January 10.

The unpopular taxation of cars, trucks, recreational vehicles, and other similar property had been in place for decades, but officials believe the city can now afford to end the tax thanks to increasing sales tax revenues.

Mayor Sandy Skelton applauded the City Council’s action.

“I am pleased that the City Council repealed Ordinance 281 in its meeting on January 10 which effectively eliminates the City’s portion of the very unpopular personal property tax on automobiles, trucks, trailers, campers, RV’s, etc.,” Skelton said. “The City of Clarendon is now among the majority of Texas cities that do not impose personal property tax on its citizens. As a result of this action, citizens will realize a tax savings when they pay other city taxes in January 2020.”

Last week’s action does not change the tax levy for 2019, which is already in place. City Hall has said previously that Clarendon’s tax on personal property generated about $50,000 per year for the city.

Donley Appraisal District Chief Appraiser Paula Lowrie said Clarendon is now one of four local entities that do not tax personal property. The other three are Clarendon CISD, the Donley County Hospital District, and the City of Howardwick. The county, Clarendon College, Hedley CISD, the City of Hedley, and the Panhandle Groundwater Conservation District do levy taxes on personal property.

In other city business last week, aldermen also approved ballot language for an election this May that would alter the distribution of sales tax collected by the city. Currently, the city collects a two percent sales tax, which is allocated as follows: 1.0 for general revenue, 0.5 percent for economic development, and 0.5 percent for property tax reduction.

If approved by voters, the ballot measure would reallocate that two percent sales tax as follows: 1.25 percent for general revenue, 0.5 percent for economic development, and 0.25 percent for maintenance and repair of municipal streets.

The ballot measure would have no effect on the overall sales tax rate but, if approved, would dedicate a portion that could only be used for maintenance and repair of streets and sidewalks existing on the date of the election. The dedicated funds could not be used to build new streets.

More information about this ballot issue will be printed in a future issue.