County Braces For Tax Revenue Loss Ahead Of City's South Austin Land Annexation

SOUTH AUSTIN, TX -- City officials postponed annexation of 27 acres of South Austin land this week to give county officials more time to figure out how to recoup the loss of taxable value once the property switches jurisdiction.

The tract is located at the intersection of Interstate 35 and Slaughter Lane. As CBS Austin reported, it's "...one of the missing pieces in the city's South Austin puzzle," meaning it's the the one major tract in the surrounding area not yet in the city's jurisdiction.

"The City of Austin lays claim to South Park Meadows and almost everything around it," the news station explained. "From restaurants to retail, it all fits snugly in the city limits."

A HOLT CAT equipment seller is the main tenant on the land.

The transfer in jurisdiction will result in roughly $1 million loss in sales tax revenue for the county, the station reported. That's roughly one-third of the Emergency Services District No. 11 budget used to run three fire stations, a fire official told the station.

On Tuesday, the city's Planning and Zoning Department confirmed it would recommend postponement of the annexation for one year. The county may have to raise taxes in order to make up for the loss, officials said.

In a statement to the news station, HOLT CAT officials expressed hope the two jurisdictions could work something out that would serve both interests and those of the community.

"We encourage both parties to work toward a reasonably and fair approach to taxation and fire suppression issues associated with the proposed annexation of our property," a spokesperson wrote. "Our first priority is to the safety of our employees and the community and we look forward to the resolution of this issue."

>>> Read the full story at CBS Austin

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