What is a 4B sales tax?

The 4B sales tax exists under Texas state law to provide an additional source of revenue to a city. Projects such as tourism facilities, parks, athletic facilities (amateur and professional), road, and infrastructure improvements, and public arts projects can all be funded with a Type 4B tax.


Why do we need to continue the 4B sales tax?

The existing legal language limits the use of how the city of Midland can use the proceeds from the 4B sales tax. At this time, the city is only allowed to use the funds for improvements, maintenance, and operations at the Scharbauer Sports Complex. We would like to expand the scope of how we can utilize the revenue brought in from the 4B sales tax to improve other parks, roads, and increase public arts. The current language does not allow us to do this.

What is this going to cost in extra taxes?

Nothing! The City Council is not proposing an increase to the current sales tax. The ballot language is asking voters to allow the current 8.25% sales tax to stay in effect.

The ¼ of a percent is the portion of the existing sales tax rate, which was voted into approval in 1999. This continued revenue allows the City of Midland to renovate, expand, and improve our existing parks, roads, public arts, and sports complexes.

How long will this tax be in effect?

If approved, this sales tax extension will allow the City of Midland to continue collecting and utilizing funds from the 4B sales tax until September 30, 2032.

How will these projects be maintained?

Maintenance and operations is one of the reasons the ballot language specifics the length of time for the tax. At this time, a portion of the proceeds from the 4B sales tax will be allocated to the maintenance of these projects.

Will any debt be issued on these projects?

No. The ballot language is based on a pay-as-you-go philosophy.

How is the sales tax broken down?

City Tax – 1 1/2%

Additionally, the City Tax is broken down as follows:

  • General Fund – 1%
  • Type 4A – 1/4%
  • Type 4B – 1/4%

County Tax – 1/2%

State Tax – 6 1/4%

Can the 4B sales tax be used to fund existing roadway or infrastructure maintenance?

The 4B sales tax, by state law, is not designed for existing roadway or infrastructure maintenance.

Where can I find more information about the City of Midland's vision for park and other infrastructure?

These plans can be found by visiting the City of Midland’s website.

Master Parks Plan – Comprehensive Plan

Will any other parks be affected besides the major projects listed?

Yes! Every park in Midland is eligible to receive upgrades with revenues generated by the 4B sales tax, including neighborhood parks, hike/bike trails, and other athletic fields.

How were the projects chosen and prioritized?

These projects were identified by citizens through public hearings for the City of Midland’s most recent Parks, Recreation, and Open Space Master Plan.

What happens with the remaining funds from the current use of the 4B sales tax?

Approval of the 4B sales tax continuation allows the City of Midland to use any remaining funds that have been generated to immediately begin working on prioritized projects.