State opposes city's ballot language
By JIMMY GALVAN Managing Editor

Attorneys for the Texas

Comptroller's Office have told The

Jasper Newsboy that the ballot language submitted by the city of Jasper on the referendum to reduce JEDCO's funds does not conform to state mandates.

"The ballot language that (the city of Jasper) submitted to us does not conform with the statutory language which is spelled out word for word for the street and maintenance tax and the economic development tax," said Russell Gallahan, economic development analyst for the Texas Comptroller's Office. "If you use the essential language of both, it states that that the adoption of a 4A economic development sales tax at a rate of…and the adoption of a sales tax for street maintenance and you fill in the blank. In this case, the statute that cities must follow is fairly clear.

"The language that the city gave us had additional language," Gallahan said. "We do not issue opinions on this but we did give them advice and that was it had non-conforming language that would potentially lead to the election not being accepted by the Comptroller's Office."

Jasper City Manager Alan Grindstaff said Monday, March 3, that conversations have taken place with the Comptroller's office concerning the proposed ballot language.

The ordinance passed by Jasper's City Council during last month's meeting stated as follows: the adoption of a sales and use tax in the name of the City of Jasper that decreases the currently effec- tive rate of sales and use tax for purposes of economic development from one-half (1/2) of one percent to the rate of one quarter (1/4) of one percent, for the purposes permitted by the provisions of Section 4A, as amended, Texas Revised Civil Statutes Annotated Article 5190.6; and adopt a sales and use tax for the purposes permitted by Chapter 327, as amended, Texas Tax Code, at the rate of one-quarter (1/4) of one-percent (1 percent) to pay the costs of maintenance and repair of municipal streets, subject to the prior pledge of one-half of one percent of the sales and use tax for economic development to pay principal of and interest on the 'Jasper Economic Development Corporation Sales Tax Bonds, Series 2001' or bonds issued to refund such bonds, taking effect July 1, 2008. The adoption of a sales and use tax in the name of the City of Jasper from one-quarter (1/4) of one percent to the rate of one-half (1/2) of one percent to the 'Jasper Economic Development Corporation' for the promotion and development of new and expanded business enterprises taking effect on July 1, 2012.

The ballot language recommended by the Comptroller's office reads as follows: "The adoption of a local sales and use tax in (name of municipality) at the rate of (insert one-eighth of one percent or one-fourth of one percent) to provide revenue for maintenance and repair of municipal streets."

According to the Comptroller's office, for sales tax elections called by the governing body, a municipality may combine measures or lower or repeal any dedicated o special purpose municipal sales tax into a single ballot proposition, and at the same time raise or adopt any other dedicated special purpose municipal sales tax. A combined sales tax proposition would have to contain substantially the same language as that required for lowering, repealing, raising or adopting each tax as appropriate. If a combined sales tax proposition were defeated, there would be no effect on existing sales taxes.

Grindstaff said the city is awaiting word from the Comptroller's office before final wording is completed on the ballot.

"I have been in contact with them for practically every day for the past week," Grindstaff said. "They want some little changes in the ballot language but we have not heard back from them. Whatever they want is what we will do.

"This is not a big issue - this just deals simply with how the ballot is be worded," Grindstaff said.

Grindstaff said the ballots for the election are to be printed by the end of March so "we need a decision on the ballot language fairly soon."

Cities are not required to pass their ballot language through the Texas Comptroller's Office nor is it required to gain approval from the office prior to any election.

Gallahan pointed out that the Comptroller's office would not act on the election until it receives a successful election.

"Then we would have to make a decision and our recommendation to the city was to refer to the statute and use the conforming language," Gallahan.

Gallahan said he has had numerous conversations with Kari Ellis, interim executive director for JEDCO, and Jasper City Manager Alan Grindstaff.

"These opinions were made on previous precedents that were made and that is the conforming ballot language," Gallahan said. "Anything that would vary from that is perhaps in jeopardy but we will not make any decision on this in advance. We just recommended that they use the statutory language that is conforming."

If the city proceeded with the election with the ballot language as stated, Gallahan said the Comptroller's office would only throw out the results of that election alone. City council and the liquor referendum that is expected to be on the May ballot would not be affected.

"We would only consider the sales tax election," Gallahan said. "We would either accept it or reject it. It would then either be implemented or not implemented. If we refuse to accept it as being a valid election, then the sales tax rate would not change and remains in the same manner that it is presently."

That means the half-cent sales tax rate would still remain with JEDCO.

"By rejecting it, it means everything is the same as it was on the Friday night before the election," Gallahan said.