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'Sales Tax Initiative Passes Easily' - The Ada News

1/11/2017 by Jessika Leatherbury
Tags: The Ada News, Prop 1, Prop 2, progress4ada, City of Ada

Sales tax initiative passes easily

Ada voters approved a proposal Tuesday to extend the city's sales tax for public works projects and economic development efforts for another five years.

The initiative to renew the sales tax, known collectively as Propositions 1 and 2, passed easily. Unofficial election results showed that 77.90 percent of voters said "Yes" to Proposition 1, while 22.10 percent voted against it.

The results showed similar numbers for Proposition 2, with 72.31 percent in favor and 27.69 percent against.

Voters clearly recognized the key roles that Propositions 1 and 2 have played in the city’s growth, said Ada City Councilman Preston Draper.

“I’m very happy that the voters decided to extend both of those proposition taxes for another term,” he said.

Proposition 1 generates about $3 million for city coffers each year, while Proposition 2 produces about $900,000 annually, City Manager Cody Holcomb said recently. He noted that the actual numbers fluctuate each year, depending on sales tax collections.

The proceeds from Proposition 1 have funded several public works projects in the past, including repairs on North Broadway Avenue and upgrades to 14th Street between Stadium and Francis. Proposition 1 dollars also allowed the city to team up with the Chickasaw Nation on some projects, including upgrades to Kerr Lab Road from Cradduck Road to the city limits.

The city uses Proposition 2 dollars to fund a variety of economic development projects, including incentives to companies considering expansion.