Page 122 - FY 2026-2027 Adopted Budget Book

Sales Tax

Sales tax is collected by the State from the sale of goods and services. The City receives 2% of the Sales Tax
on purchases in Bedford. This is further split into three parts based on their allowed use. One percent is
available for use by the General Fund.

In January of 1995, the citizens of Bedford voted to adopt an additional one-half percent sales and use tax for
a reduction in the property tax rate. This additional 0.5% became effective in October of 1995. This amount is
used in the truth-in-taxation calculation in determining the tax rate each year and also available in the General
Fund.

Finally, in November 1997, the citizens of Bedford voted to adopt an additional one-half percent sales tax for
the purpose of maintenance and improvements of the street network. This additional 0.5% became effective in
April of 1998 and is recorded in the Economic Development Corporation (EDC) 4B - Street Improvement
Fund. The Bedford Street Improvement Economic Development Corporation was created to direct and
authorize all expenditures, with the City Council having final approval. The Council appointed Corporation is
comprised of citizens and elected officials.

Budget amounts are determined by staff following a review of the monthly reports and evaluating a rolling
average. Staff also takes into account local economic conditions when determining a reasonable budget
amount.

Sales Tax Collection

$15M

$10M General Fund
Property Tax Reduction
EDC-4B Street Improvement Fund
$5M

$0
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
Data Updated: Aug 10, 2026, 9:41 PM View Report
FY2026 and FY2027 are projected amounts.
These amounts are net of economic development incentives.

FY 2026-2027 Adopted Budget Book · September 15, 2026 118