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Cameron business owners will see an increase in their tax liability to the town after voters approved a 2 percent sales and use tax during Tuesday's special municipal election.
The measure was previously voted on in November 2012 and was defeated 39-37. The two vote margin reoccurred during the latest election, only this time in favor of the tax. With a much smaller voting turnout, the measure passed 11-9.
The tax, which was enacted in support of the town government and improvements approved by the Cameron board of trustees, will increase the town's income from the pervious annual average of $17,000.
"We can use it for what's needed such as roads," said Cameron Mayor Jason McGee. "This will help us generate the income to meet our main goal which is to get our streets repaired."
McGee said the town has been dependent in the past from the franchise fees garnered from Arkansas Oklahoma Gas and Oklahoma Gas and Electric. Now new revenue will begin to flow into the town's coffers from the sales tax levied on local businesses such as Johnson Construction, Bobo's Convenience Store, JoB cement plant as well as a diesel repair shop and a well completion company located within town limits. McGee said services provided by businesses are excluded from the tax.
The use tax enacted with the new ordinance will generate revenue on items shipped or delivered to the Cameron town limits. Entities such as the school, churches and town hall will only be subject to the use tax if the items they purchased required they pay tax, according to McGee.
Planning of street repair will be a future improvement to the town but upgrades have already begun on the sewer system.