TAX NEWS - 2010

Texas Tax: Democratic state convention to get city sales tax incentives

CORPUS CHRISTI — City sales tax dollars will help offset the Texas Democratic Party's costs for having its convention at the American Bank Center Arena this weekend.

The sales tax money comes from a one-eighth cent sales tax that pays for arena-related expenses.

The Corpus Christi Convention and Visitors Bureau promised the convention it would cover $25,000 of transportation and convention expenses as an enticement to bring the expected 7,000 delegates to the city. With the bureau's recent budget cuts, it needed help paying for its promise, CEO Keith Arnold said.

"The impact of this is huge," Arnold said of the convention, which runs Thursday through Saturday.

Now, $12,500 will come from the city's sales tax fund. The convention and visitors' bureau will pay for the other half.

The Corpus Christi Business and Job Development Corp. board, which oversees the expense of all types of sales tax the city collects, approved the $12,500 payment at its meeting Monday with little discussion. Board members Eloy Salazar, Foster Edwards and Butch Escobedo approved the payment. Board member Robert Tamez abstained and member Brad Lomax was absent.

The money will be drawn from a $500,000 arena marketing fund the City Council approved last year.

The marketing fund was established to help the arena attract events, advertise events or pay operating costs to lower fees the arena charges.

In other business, the corporation board approved two $10,000 incentive payments from the arena marketing fund 2011 and 2012 regional high school basketball tournaments.

The council doesn't need to approve either use of the marketing fund, under the rules the council approved for the fund.