Possible property tax increase could add to soaring small business costs
If approved, two bonds on San Angelo’s May 3 ballot would increase property taxes.
SAN ANGELO, Texas — San Angelo’s small business owners could have extra expenses if two provisions on the May 3 ballot are approved.
In the next election, voters will choose whether to approve San Angelo ISD’s $397 million bond provision and a separate $41.6 million issue for coliseum upgrades. For businesses paying thousands of dollars in property taxes each year, any increase can be significant.
Old Central Firehouse Pizzeria & Taproom’s Michele Babiash said tax increases are difficult, because the business can’t always pass its expenses on to its customers.
“You can’t take your pizza costs from $10 to $14 overnight,” she said. “You’re not gonna have any customers at that point. And so, it is hard for a small business to incur those costs, and unfortunately it’s not just taxes.”
Babiash estimates that she and her husband pay at least $10,000 in property taxes on the business, which has a bed and breakfast attached. The pair also plans to open a second location on Lake Nasworthy, which adds to the annual property tax bill.
Babiash said she understands the need for the projects that would be funded by a tax increase but said having new expenses without rising income is hard to manage.
Property taxes are the most significant source of revenue for the City of San Angelo. Assistant finance director Ryan Gaddy said property taxes account for roughly 48% of the City’s annual income. He said the funds are primarily used to cover San Angelo’s police and fire departments.
