Maverick County’s One-Half Cent Sales Tax raised $34.3 Million since 1996: The 800 Pound Gorilla

By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2016

Recent federal indictments against several Maverick County residents and out of town persons regarding bribery and corruption in public contracts concerning the Maverick County Landfill caused the Eagle Pass Business Journal to investigate the formation of the  county landfill.

The Eagle Pass Business Journal found that Maverick County Commissioners Court, composed of then County Judge Rogelio “Rocky” Escobedo and Commissioners Johnny Martinez, Guillermo “Willie” Mancha, Roberto Ruiz, and Enrique Ibarra, approved on February 13, 1995 a resolution approving the a special election calling for the implementation of a one-half cent sales tax be charged on all retail sales in Maverick County to raise funds for the design and construction of two major county projects: a solid waste landfill and solid waste collection and debt payment on the Tom Bowles Detention Center (County Jail).  Commissioner Roberto Ruiz was absent at the February 13, 1995 meeting in which the resolution was approved.

The sales tax revenues raised from the proposed one-half cent sales tax would be used by Maverick County with 50% to design, construct, and operate the Maverick County Landfill and solid waste collection and the other 50% for debt payment on the Tom Bowles Detention Center.

Former Texas Senator Frank Madla and State Representative Pete P. Gallego introduced legislation at the Texas Legislature to allow Maverick County to charge a one-half cent sales tax subject to its voters approval at a special refendum election.  Senator Madla Senate Bill 821 authorizing the special election to determine Maverick County taxpayers approval of a one-half cent sales tax was approved in the Texas Senate on March 22, 1995.  State Representative Gallego House Bill 2087 was similarly approved by the Texas House of Representatives on April 4, 1995.

The Texas House of Representatives added language to the one-half cent sales tax in Maverick County that after payment in full of the debt on the Tom Bowles Detention Center and/or the County Landfill was sold or closed, the one-half cent sales tax revenues would go to property tax reduction or relief of Maverick County residents and that portion of the sales tax would expire upon payment of the detention center debt or the County Landill was closed.  Another provision in the original bill stated that if five (5%) percent of the registered voters of Maverick County petitioned for an election to adopt or abolish the tax, Maverick County Commissioners Court would have to call the election.

Subsequently, Maverick County held a special election calling for the collection of a one-half cent sales tax on all retail sales in Maverrick County on May 6, 1995.  A very low voter turnout of 770 persons or votes participated in the one-half cent sales tax referendum election of May 6, 1995.  Maverick County taxpayers approved the one-half cent sales tax with 490 votes in favor compared to 280 votes against.  In 1995, Maverick County had approximately 12,000 registered voters.  Only six (6%) percent of Maverick County voters in 1995 cast a ballot on the one-half cent sales tax referendum election.

After Maverick County voters approved the one-half cent sales tax measure on May 6, 1995, the sales tax began to be charged and collected in 1996.

Since 1996, Maverick County has collected $34,319,491.49 ($34.3 Million) in sales tax revenues as of April 2016, according to the Texas Comptroller of Public Accounts.  In 1996, the total amount of $642,884.89 in sales tax revenues was collected by Maverick County.  In 1997, a total of $881,306.56 was collected.  In 1998, a total of $964,009.65 was collected.  In 1999, a total of $1,052,786.57 was collected. In 2000, a total of $1,079,343.09 was collected.  In 2001, a total of $1,201,793.76 was collected.  In 2002, a total of $1,276,416.68 was collected.  In 2003, a total of $1,266,287.23 was collected. In 2004, a total of $1,392,406,30 was collected.  In 2005, a total of $1,529,378.78 was collected.  In 2006, a total of $1,729,754.17 was collected.  In 2007, a total of $1,798,435,44 was collected.  In 2008, a total of $1,934,043.70 was collected.  In 2009, a total of $1,974,534,97 was collected.  In 2010, a total of $1,948,502.55 was collected. In 2011, a total of $2,307,188.78 was collected.  In 2012, a total of $2,401,982.65 was collected. In 2013, a total of $2,512,066.92 was collected. In 2014, a total of $2,514,,551.98 was collected.  In 2015, a total of $2,962,460.10 was collected. During the first four months of 2016, a total of $849,357.12 has been collected.

From 1996 to 2009, the Maverick County one-half  cent sales tax collected $18,882,381.39.  In 2009, Maverick County Commissioners Court approved to design, construct and operate the Maverick County Landfill for which the one-half cent sales tax was originally approved.  However, in 2009 Maverick County reported having no funds in its bank accounts reserved for designing, building and operating the Maverick County Landfill.   Maverick County used and/or spent the $18,882,381.39 in sales tax revenues it had been collecting since 1996 to build the County Landfill.  Former Maverick County Financial Advisor Roberto Rodriguez raised concerns in 2009 questioning the whereabouts and possible misuse of the these $18,882,381.39 sales tax revenues by Maverick County.  Rodriguez questioned Maverick County’s use of these $18.88 Million for purposes not originally approved and intended by state law.  Maverick County Judge Jose A. Aranda, Jr. and County Auditor Carlos Pereda denied Rodriguez’s concerns and questions.

In 2009, Maverick County Commissioners Court formed the Maverick County Soldid Waste Authority to design, build and operate the Maverick County Landfill and had to borrow $8.5 Million to pay for the Landill since there was no sales tax revenues in reserve to pay for it.  Former Commissioner and now County Judge David Saucedo was the sole Commissioner to vote against borrowing the $8.5 Million.

On March 14, 2016, Maverick County Commissioners. Court approved to refinance two 2009 County Bonds in order to to save $2,600,000 in lower interest rates, including the $8.5 Million.

Many Maverick County political insiders refer to this use of the $18.88 Million in sales tax revenues as the 800 Pound Gorilla. To date, former and/or present Maverick County public officials have not provided a plausible and reasonable explanation of how these $18,88 Million in sales tax revenues were used or spent.

The Maverick County Landill was built and opened with the $8.5 Million in bonds issued by Maverick County. In 2013, Maverick County approved another $3.2 Million in bonds to build Cell No. 2 of the Maverick County Landfill.   Meanwhile, Maverick County continues to charge and collect the one-half cent sales tax without providing property tax relief to taxpayers as originally provided in the passage of the state legislation.

The Maverick County Landfill has been riddled with many problems, including the indictment and guilty plea of its former general manager, Hector Daniel Chavez, Jr., of embezzling funds, indictment of former City of Eagle Pass City Manger Hector Chavez, Sr. for bribery and kickbacks to former Maverick County Commissioner Rudy Heredia, and many other problems.

In light of the Maverick County Appraisal District annual astronomical increases of Maverick County ad valorem property tax appraisals, Maverick County taxpayers are clamoring for tax property relief from Maverick County public officials, including using revenues from the one-half sales tax for tax relief.