Houston voters to determine sales tax increase, city holiday at next election

Houston voters will get to cast the votes for two different issues in October as the Houston City Council approved ballot measures during the regular City Council meeting on June 12.

First up was Ordinance 25-11, which would amend the current Houston Municipal Code to increase the city’s sales tax rate from the current 2% to 4% with exemptions for items such as heating fuel and firewood. The additional increase would be dedicated to funding Houston’s road improvement plan within the city. If approved by the voters, the tax would take effect January 1, 2026 and expire in five years.

The sales tax ballot proposal was approved 5-2, with Council members Lisa Johansen and Sandy McDonald opposing the measure, instead supporting the idea that the city needs to approve a road improvement plan first.

Next on the agenda was a ballot measure for voters to decide if a day-long festival, billed the Matanuska Thunder Funk and hosted by a marijuana business, should become the city’s first official holiday. Ron Bass, who along with his wife Lacy, co-owns Houston Grass Station, which sponsors the event, said the festival is a free, family-friendly event and food bank fundraiser.

“It feels good to contribute to our local friends and family,” Bass said as he addressed the council. “That’s why Lacy and I are pushing so hard to make this a local holiday. Please consider putting this on the ballot for all to vote on. If the public is in favor of this or not, the vote will decide.”

However, local residents and the council were split on the idea. Community members questioned the measure when it was introduced last month because it is linked to the marijuana industry, while others support the idea.

“Let the residents vote. It passes? It passes. It fails? It fails,” said Councilman Jeffrey Brasel

Ultimately, the council voted to let residents decide if it should become a city holiday, with the council voting 4-3 to place the festival on the ballot, with council members Johansen, McDonald and Kent Mitchell voting no, saying that they do not want the city government to be officially affiliated with an event they consider a promotional event for a private cannabis business.