2021 Road Maintenance Sales Tax Information

The city has called a special election on May 1, 2021 for the purpose of reauthorizing the road maintenance sales tax in Lakeway.

Chapter 327 of the Texas Tax Code authorizes Texas municipalities to adopt a sales tax of which the revenue is restricted to the maintenance of roads within the city limits at the time of the election.  The voters of Lakeway first approved imposing this sales tax in 2001.  The tax code requires that the road maintenance sales tax be reauthorized by the voters every four (4) years.  The tax was last approved by voters in 2017.  Unless reauthorized at this election, it will expire.

The Chapter 327 levy has grown throughout the years and generated approximately $750,000 in fiscal year 2020. Pursuant to Chapter 327 the revenue may be used solely to fund street maintenance.   The City has utilized the tax proceeds to fund fresh asphalt overlays and large street and drainage projects.   Previous projects funded from this source have included the Lakeway Boulevard overlay and the Hurst Creek Road and Drainage project.