MCALLEN — McAllen city commissioners have voted to agree to raise the sales tax on all resident electrical and gas bills.
Starting on July 1st, a 2% tax increase will take effect to all electrical and gas bills to McAllen residents to fund the city's General and Development Fund. Over the past several years, the city's revenue stream has dropped and so the commissioners decided to add the increase to the utility tax. Deputy City Manager Brent Branham stated, "In these times we don't want to look at layoffs, we don't want to look at reductions in services and if we can raise funds this way, then we will be able to meet our budget needs here in the future."
The tax will cost the average homeowner $3 dollars a month and should raise about $1 million dollars a year. The general fund pays for the police and fire department, parks and recreation and the library.