What is a 4B corporation?
The Texas Legislature created the economic development sales tax in 1989 to give smaller communities the financial resources to attract businesses and jobs. In February 2004, Lufkin voters approved an eighth-of-a-cent economic development sales tax that gives Lufkin’s Economic Development Corporation the ability to offer healthy incentives to new or existing industries that create new jobs here. Lufkin’s Economic Development Corporation collects Section 4B revenue, which can be used for manufacturing and industrial development, as well as several other project types, including quality-of-life improvements.
What is the process?
Section 4B corporations must conduct at least one public hearing on proposed projects and obtain city council approval of the expenditure. Notice of the project must be published in a newspaper of general circulation in the city. After the projects have been considered at a public hearing and sixty days have passed since the first published notice of the project, the section 4B Corporation is authorized to make expenditures related to the project.
Who makes the decisions?
With oversight by the Lufkin 4B Corporation Board of Directors and the Lufkin City Council, the Economic Development Corporation determines how funds are spent. Lufkin’s 4B Economic Development Corporation has seven board members. Each board member must be a resident of the city, and at least three may not be employees, officers or members of the city’s governing body.
What it does
Lufkin’s 4B Economic Development Corporation works to: