Liberty voters will decide Nov. 3 whether to redirect an estimated $1.3 million a year in sales tax revenue from the Liberty Community Development Corporation to the City of Liberty’s general fund, where it could be used for needs such as street improvements, property tax requirements and city debt.
The change would require dissolving LCDC and ending the half-cent sales tax currently dedicated to the economic development corporation. That half-cent would instead become part of the city’s general sales tax, increasing the city’s share from 1 percent to 1.5 percent.
The overall sales tax rate would not increase. Shoppers would continue to pay 8.25 percent.
“The total sales tax rate would not change. Shoppers would still pay 8.25 percent. The issue is which local government receives the half-cent that now goes only to LCDC,” City Manager Bryan Kendrick said.
Early voting on the measure begins Monday, Oct. 19, and continues through Friday, Oct. 30. Election Day is Tuesday, Nov. 3.
“Council placed this question on the November 3 ballot so the voters of Liberty can decide whether LCDC and its dedicated half-cent sales tax should end, and whether the City’s sales tax should be 1.5 percent instead of 1.0 percent,” Kendrick said.
The half-cent tax is expected to generate approximately $1.3 million during the city’s 2027 fiscal year. Kendrick said that figure is an estimate and actual collections will vary depending on sales.
If voters approve the measure, the money would become part of the city’s general fund and would be appropriated annually by the Liberty City Council through the budget process.
Council members have discussed using the additional sales tax revenue to help meet future city needs, including a multi-year street improvement program, and to supplement revenue needed for property taxes and debt obligations.
Kendrick said approval of the measure would not, by itself, raise or lower Liberty’s property tax rate. Instead, the additional sales tax would become part of the city’s overall approach to funding its needs, with the City Council determining how the money is allocated each year through the budget process.
Economic development efforts would continue if LCDC is dissolved.
LCDC currently contracts with the city for staff services. If voters approve the measure, the City Council has expressed a desire to create a Liberty Community Development Commission. Economic development operations would remain at City Hall, with proposed incentives handled through Chapter 380 agreements.
Under that process, proposed economic development incentives would be reviewed by the new commission before going to the City Council for a final vote.
LCDC currently has approximately $3.25 million on hand and about $1.8 million in debt related to Woodspring Road.
If voters approve dissolution, LCDC would not disappear immediately. Its debt would first have to be retired, followed by a wind-down period while all remaining obligations are satisfied. Kendrick said that process is expected to take about six months.
The City Council would then have to amend the general fund budget and determine how to allocate the remaining funds.
If voters reject the proposal, the existing structure would remain unchanged. LCDC would continue operating, its dedicated half-cent sales tax would remain in place and the city’s general sales tax would stay at 1 percent. Residents would continue paying exactly the same amount in sales tax, though the city would not have access to that half-cent for general municipal needs, including a proposed multi-year street improvement program.
“If the measure passes, that half-cent becomes general City revenue. If it fails, LCDC and the dedicated tax stay as they are. Either way, this is the voters’ call,” Kendrick said.
Before early voting begins, the city will hold two town hall meetings to give residents an opportunity to learn more about the proposal and ask questions.
The meetings will be held Thursday, Oct. 8, and Thursday, Oct. 15, at 6 p.m. at the Liberty Center. Kendrick and City Attorney Brandon Davis will make a brief factual presentation and then take questions from residents. The public is encouraged to attend. Kendrick said city staff will remain at the meetings until the last question is answered.
He emphasized that the meetings are intended to provide information about the measure rather than advocate for or against it.
“The City will explain the facts. We will not tell anyone how to vote,” he said.
Early voting runs from Oct. 19 through Oct. 30. Election Day is Tuesday, Nov. 3.