Austin’s Car Rental Tax for Civic Projects Used for Employee Salaries

Back in 1998, Austin, Texas voters approved a 5% rental car tax that was set primarily to fund a $40 million events facility, the Palmer Events Center, and a parking garage, according to Austin American-Statesman. Tax funds left over from the events center were slated to help the completion of Butler Park.

The city’s master plan stated that the park would cost $18.5 million and was to be finished in 2007, but after completing only the initial phases of the construction, the city announced it will need an additional $19.5-23 million after already spending $13.5 million in order to complete the project.

Park advocates argued that the car rental tax should be helping to supplement the funds, but an article from the American-Statesman showed that these funds have gone toward employee salaries, bonuses and building maintenance of the Palmer Events Center. The article points out that the original ballot for the car rental tax did not mention being used for these purposes.

Click here for the original article.

Comments

  1. Douglas [ November 23, 2011 @ 06:34AM ]

    Just one more example of why Goverment should stay out of the "Taxation without represantation" business. Why don't the Austin voters go for a 5% tax on "food" bought in Austin?

  2. Vacation Quest [ March 13, 2012 @ 12:09AM ]

    That's really a good source for the authority for providing the employee salaries.I hope for the best of it.

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