Sales Tax
A city can adopt a sales tax if the combined rate of all local sales taxes would not exceed two percent at any location within its territorial limits. The sales tax in Corinth is 8.25% of goods or services sold within the City’s boundaries. The tax is collected by businesses making the sale and is remitted to the State’s Comptroller of Public Accounts on a monthly, and in some cases, a quarterly basis.
Sales Tax Distribution
Of the 8.25% tax, the State retains 6.25% and distributes 1% to the City of Corinth, .25% to the Fire Control, Prevention & Emergency Services District Tax Fund, .25% to the Crime Control & Prevention District and .50% to the Economic Development Corporation.
Fire Control, Prevention & Emergency Services District
In 2019, the City enacted special legislation providing authorization to create a Fire Control, Prevention, and Emergency Management Sales Tax District under Local Government Code Chapter 344. The Fire District is funded by a sales tax that allows the City to provide the citizens with professional and efficient fire services. The district supports fire control, prevention, and emergency services, including costs for personnel, administration, expansion, enhancement, and capital expenditures. The Fire District was authorized in a November 2020 Special Election for the purpose of adopting a 1/4¢ dedicated sales tax for Fire services.
Crime Control & Prevention District Sales Tax
Subject to voter approval, this sales tax can be imposed by a city located in a county with a population of more than 5,000 or by a county with a population of more than 130,000. The governing body in a municipality may specify the number of years the district will be continued. Revenues from the sales tax may only be used to finance a wide variety of crime control and prevention programs per Chapter 363 of the Local Government Code and Section 323.105 of the Tax Code. In September 2004 the Corinth Crime Control and Prevention District was established with the passage of 1/4¢ dedicated sales tax. The most recent authorization for a continuous dedicated sales tax was approved by voters in the May 2019 election for ten years.
Economic Development Corporation Sales Tax
The Development Corporation Act of 1979 authorizes a city to adopt a sales tax for Economic Development. This form of tax can be imposed by any incorporated city. Revenues must be turned over to a development corporation formed to act on behalf of the City in carrying out programs related to a wide variety of projects including parks and business development. In the November 2002 election the 1/2¢ Economic Development Sales Tax was passed, with collections beginning in January 2005.
