KILLEEN, Texas — Sales tax rates are up in Killeen as interest rates rise. This potentially could be a positive thing for the city, but City Manager Kent Cagle and TAMUCT Economist Robert Trent say not much will actually change.
It’s a big boost for the city with the increasing sales tax revenue- giving them an opportunity to put more money towards projects.
“This month into the fiscal year we’re a little bit over 10% ahead of where we were last year,” said Cagle.
Though this is the case, the projects the city wants to do will simply cost more because of the nationwide soaring inflation, and Killeen is not immune.
“...Although it helps the city, the city struggles with the same challenges that [we] as community members do,” said Trent.
Projects improving infrastructure such as fixing roads or developing buildings in town could easily be more expensive because of said rising costs.
“The last check we received...was a decrease, so obviously we’re watching that very closely," Cagle said. "Going forward, there will be a much larger decrease [in payment] because of the cost of things constantly increasing.
Cagle added that the sales revenue increase is not a cure-all by any means.