BOSSIER CITY, La. - The Bossier City Council has approved a new plan to set aside a portion of local sales tax revenue generated during construction of the Amazon data center for future infrastructure projects.
The council voted Tuesday to create an Infrastructure Capital Fund which will receive 0.5% of city sales tax collections over the next five years, or until construction of the data center is complete.
While most tax revenue associated with the project will go to Bossier Parish, city leaders expect increased local sales tax collections and want to reserve part of that growth for future community investments.
Council President Chris Smith said the fund will help ensure the city makes the most of the economic benefits generated by the project.
"We don’t want to look back four or five years from now and say we squandered all the extra sales tax revenue that came in," said Smith.
Based on current sales tax collections, the fund could receive approximately $285,000 annually, growing to about $350,000 per year as revenues increase.
Smith said the fund could accumulate more than $2 million by the time it matures. The money could be used to match grant funding or state capital outlay appropriations for major projects, reducing the need for the city to borrow money.
Potential uses for the fund include public works improvements like road maintenance, or quality-of-life projects like parks and recreational facilities.
The money will remain untouched until construction of the Amazon data center is complete. At that point, future city leaders will work with residents to determine how the funds should be spent.
The Infrastructure Capital Fund will begin collecting money in January.