Mayor issues letter concerning sales tax

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Mayor Lee Posey

To: Citizens of Natchitoches

RE: Economic Development District C

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I am writing to clarify for each of you how the recently introduced Ordinance No. 23 affects the City of Natchitoches. Ordinance No. 23 will levy a 1% sales tax only within Economic Development District C. District C is the University Boulevard Corridor out to Exit 138 of I-49. This includes the area which includes all businesses in the immediate area of the interchange of University Boulevard and I-49.

A map of District C can be viewed on the City’s website at https://www.natchitochesla.gov/content/economic-development-district. Once created, Economic Development Districts allow for a levy of a 1% sales tax within the district. Due to the City infrastructure needs as well as assistance with the new recreational park, Parc Natchitoches, the City is proposing to levy the 1% sales tax.

This sales tax applies to all goods and services provided by businesses within the District with the exception of gasoline. If a automobile dealership locates to areas within District C, vehicles sold will be taxed based on the purchaser’s physical address and this sales tax would not apply to a vehicle purchase. It should also be noted; revenue will primarily come from people passing through the area.

In addition, there are new service roads being considered along University Boulevard near I-49 within District C. This tax revenue will allow the City to continue future developments at this location and some of the intended businesses and restaurants that will be needed to support the tournament participants of the Parc Natchitoches. Tournaments are already scheduled on a regular basis throughout 2020 beginning in February.

I am certain this further explanation of the boundaries of Economic Development District C and the intended manner that the City will use the tax revenue generated, clarifies the City’s intent. I appreciate and acknowledge the concern we have received from the citizens of Natchitoches as it relates to this matter and the future of our community.

Sincerely yours,

Lee Posey, Mayor