The city southwest of San Antonio off I-35 is a case in point about location, location, location. Truckers passing through on their way to the very busy Eagle Ford Shale find Van Ormy a convenient place to fill up and grab a bite to eat. And bless their hearts they pay the sales tax on their purchases. Oftentimes they’ll stop in at one of the local eateries for a more filling meal, and they’ll pay a sales tax there, too. And being a rural town with limited shopping choices, residents go online to make their purchases, and play a sales tax for that. And thanks to that 400% increase in sales tax revenue since Von Ormy incorporated in 2008 the city will eliminate property taxes.
“I don’t like taxes. No one likes taxes. We said, ‘Let’s try to do something a little different and build up a sales tax base,”’ Mayor de Vera tells KTRH News.
The mayor says since learning that about 95% of the sales tax burden is paid by non-residents they decided to build up their sale tax base and move the burden of funding their town to the sales tax.
"We’re now where we can eliminate property taxes and still have a 30% increase in our budget over last year,” says Mayor de Vera.
The growing city has $830,000 in reserves going in to next year, and plans to build a firehouse, support their marshals, and build a new city hall, without having to you a dime of property-owner’s tax money.