The proposal has two elements. General Obligation bonds to be authorized by the voters, AND a new 0.75% sales tax for roads to be authorized by the voters.
⇒The GO bonds to be authorized are currently estimated at $13 million. The GO Bonds are paid for with your ad-valorem or property tax. The long-range plan would have the City returning to the voters sometime in the next 10-15 years to authorize additional GO bonds to be issued as the older GO bonds are paid off and to allow the City to keep investing in Choctaw roads.
⇒Voters will also be asked to approve a three-quarters of one percent (0.75%) increase in sales tax, which means that for every $100 purchase in Choctaw, the sales tax increase will be 75 cents. That will increase the total sales tax rate in Choctaw to 9.5%. The increase will generate approximately an additional $1.1 million/year in revenue to fund the road improvement projects.
The sales tax increase is permanent; the property tax increase is not.