SALES TAX

Local Sales Tax Rate: 8.25% (includes 6.25% state tax)

Ad Valorem Property Tax Rate based on $100 valuation for 2006:

Current Year Budget:

General Obligation Bonds:

City Annual Retail Sales Tax Collected: $1,822,324.36

Aggregate Appraisal Value:

Canyon ISD

Foreign Languages Offered: French, Spanish

Advanced Courses: English 3 AP, English 4 AP, Calculus AP, Biology AP, Physics AP,
US Government AP, Microeconomics AP, US History AP, Spanish 4 AP, and Spanish 5 AP.

West Texas A&M University

West Texas A&M University, established in Canyon in 1910, is a member of The Texas
A&M University System and the northernmost senior institution of higher education in the state. WTAMU serves a five-state region and is the most accessible and affordable university for many residents of Colorado, Kansas, New Mexico and Oklahoma as well as Texas.

Students are given the choice of more than 60 undergraduate and 40 graduate degree programs, including tradition-rich programs in teacher preparation, music and dance, agriculture, business and nursing. But the world is changing, and so is WTAMU. New and innovative programs in communication disorders, environmental science, equine industry, instructional technology, integrated pest management, mass communications, music therapy and pre-law studies are gaining national attention, and an Honors Program for students interested in more intense academic challenges is growing rapidly.

Traditional classroom instruction is complemented by state-of-the-art technology which
links the University—and its students—to the world. A leader in distance learning, West Texas A&M offers two complete graduate degree programs and approximately 100 courses online each semester.

The University’s physical landscape is also changing. A new Event Center, with a seating
capacity for 6,000, opened in January 2002, students are enjoying a newly renovated food court and recreational pool, and work has begun on a $30 million Fine Arts Complex that is scheduled for completion in 2005.

West Texas A&M University students, a diverse population of approximately 7,000 representing more than 30 states and 30 countries, enjoy a tree-shaded 135-acre residential campus, a safe and friendly environment, small classes, personal attention from faculty and staff, career-oriented opportunities, and all of the other amenities—in and out of the classroom—that make up the total university experience.

West Texas A&M University
2501 Fourth Avenue
Canyon, Texas 79016-0001
(806) 651-2000
www.wtamu.edu

Rick Husband Amarillo International Airport: Amarillo, TX: 18 miles north of Canyon; served by American Eagle, Continental, Delta, and Southwest Airlines. Rental cars: Hertz, Budget.

Lubbock International Airport: Lubbock, TX: 120 miles south of Canyon; served by major airlines. Rental cars: Advantage, Avis, Budget, Hertz, National.

Distance to major interstate highways:

• Interstate 40, connecting in Amarillo, 20 miles north of Canyon
• Interstate 27, connecting one mile east of Canyon.

POPULATION

Population (based on 2000 US Census)

Population by Age (city)

Period of Record : 4/ 1/1923 to 12/31/2005

Percent of possible observations for period of record.

Check Station Metadata or Metadata graphics for more detail about data completeness.

* Source: Western Regional Climate Center

Media

Police/Fire Departments

Health Care

Family Medicine Center of Canyon

Assitance Programs

Canyon Cares
United Way of Amarillo and Canyon

Carenet

Cost of Living

Canyon boasts a cost of living that is lower than most places in the nation. Average cost of living in the City is 9% below Dallas, 11% below Albuquerque and 29% below Los Angeles.

Business Tax

Texas has one of the lowest tax burdens in the nation, ranking 49th among the 50 states in per capita state taxes in 2000. Total state taxes averaged $1,286 per person, 32 percent less than the national average of $1,899. Similarly, state taxes in Texas are low relative to income. Total tax collections amounted to just over $49 per $1,000 of personal income in 2000 compared to the national average of $67 per $1,000 of income.

Income Tax

Texas has no personal income tax, nor does Texas have a corporate income tax. Our corporate franchise tax, however, does have a component based on earned surplus. Earned surplus is essentially federal net taxable income plus compensation paid to corporate officers and directors if the corporation has more than 35 shareholders.

Corporate Franchise Tax

The franchise tax is imposed upon all corporations that do business in the state or that are chartered or authorized to do business in the state. It is a tax on the privilege of doing business, measured by net taxable capital and by net taxable earned surplus that are apportioned to Texas. Apportionment is determined by using a single gross receipts formula, with allowable deductions applying to both the capital and earned surplus components. The tax rate on net capital assets is 0.25 percent, or $2.50 per $1,000 of net taxable capital (taxable capital is computed by adding the corporation’s stated capital, as defined by state law, and the corporation’s surplus). The tax rate on net earned surplus is 4.5 percent. Corporations calculate the franchise taxes due on taxable capital assets and on taxable earned surplus, paying the greater of the two amounts. There is no minimum tax, and no taxes are due on liabilities of less than $100.

Sales and Use Tax

The state levies a sales and use tax of 6.25 percent on sales of tangible personal property and certain services. Cities, counties, and transit authorities may add to the sales tax rate up to a maximum combined state and local rate of 8.25 percent. Texas grants sales and use tax exemptions on machinery and equipment utilized in the manufacturing process. Purchases of machinery and equipment, replacement parts, and accessories that have a useful life of more than six months, and that are used or consumed in the manufacturing, processing, fabricating, or repairing of tangible personal property for ultimate sale, are exempt from state and local sales and use tax. Natural gas and electricity are exempt from sales taxes when sold to commercial businesses that are "predominantly" manufacturing.

Property Tax

Texas has no state property tax. Local governments and special taxing districts levy taxes on real and tangible personal property. All property is appraised at full market value, and taxes are assessed by local county assessors on 100 percent of appraised value. The total tax rate is the sum of the rates of all applicable taxing units including cities, counties, schools, and special districts. Local governments can enter into agreements with businesses to abate local ad valorem taxes on real and personal property for up to 10 years. In 1989, the Texas Constitution was amended to exempt goods in transit (or "freeport goods") from ad valorem taxation. Freeport goods are inventories acquired or brought into the state by businesses and held for no more than 175 days before being shipped out of state. Local jurisdictions were allowed a limited amount of time to take official action and continue taxing such goods. Otherwise, the goods became exempt. A number of jurisdictions in Texas have chosen to allow the exemption, which is irrevocable once in effect. Jurisdictions opting to tax freeport goods may later rescind the action. Property utilized for pollution control is exempt from ad valorem taxation. A facility receives determination from the Texas Natural Resource Conservation Commission that the property is for pollution control purposes. A positive determination is based on property purchased, acquired, constructed, installed, replaced, or reconstructed after January 1, 1994 to meet or exceed federal, state, or local government laws, rules, or regulations.

Motor Fuels Tax

Taxes are imposed in Texas on three fuels: gasoline, diesel, and liquefied gas. The state tax rate on gasoline is 20 cents per gallon (19 cents for transit companies) and 20 cents per gallon on diesel fuel (19.5 cents for transit companies). The tax rate on liquefied gas is 15 cents per gallon.

Unemployment Insurance Tax

Businesses that employ one or more individuals may be subject to the state unemployment tax. In 2002, new employers will pay 2.7 percent on the first $9,000 of wages per employee. A minimum of six quarters is required to obtain an experience rating in order to determine an employer’s revised rate. The effective tax rate in 2002 ranges from a minimum of .30 percent to a maximum of 6.54 percent for experienced-rated accounts.

Workers Compensation Insurance

Workers compensation insurance is not mandatory in Texas. Recent tort reform changes by the Texas Legislature have resulted in major improvements in the state’s program for workers compensation and improvement in the overall Texas business climate.

Canyon was incorporated in 1906, but its roots as a community date back to the mid- to late-1800s. The early pioneers of Canyon built a solid foundation for the city, which has withstood the test of time.

Today, Canyon boasts one of the lowest tax rates in the State, compared to other cities its size. The City Commission and City Staff maintain a "pay as you go" philosophy, while staying ahead of infrastructure replacement needs. The City's unequivocal commitment to comprehensive and long-range planning results in dependability of services. Citizens can rely on the fact that when they wake up in the morning, the water will be flowing, the trash will be picked up, and they will be able to drive to and from work and school on safe, well-maintained streets.

The Canyon Police and Fire Departments remain unswerving in their commitment to public safety for Canyon residents. The Canyon Police Department is the only nationally accredited police department of its size in Texas. Canyon residents enjoy one of the lowest crime rates in the State.

Despite the fact that the Canyon Fire Department is mostly volunteer, it has outpaced
many larger cities to become ranked the second-best fire department in Texas. Because of its exemplary service, Canyon has an insurance rating (ISO) of 3. This low rating translates into lower insurance rates for Canyon homeowners.

While committed to the future, Canyon is also loyal to preserving the past. The City was recognized as a 2002 Texas Main Street City. The Main Street program offers an approach to downtown revitalization that has been successful in more than 1,000 towns and cities throughout the country. With this designation, Canyon will continue to preserve the past while planning for the future. Resources have been dedicated toward restoring Canyonıs celebrated brick streets, as well as enhancing the inherent qualities around the square and within the central business district.

Efficient Management Lower Costs

Average home value - $85,858
City taxes - $363.90 per year
Cost of City Services - $30.33 per month ($0.42/$100 Valuation)

Cost supports the following:

How Canyon's City Cost Compares:

• Cable TV service: $35.94 per month
• One night at the movies for a family of four with soft drinks and popcorn: $44.50
• Average monthly expenditure to eat out for one person: $113

* Source: Cox Cable, Cinemark Movies 16 and Texas Restaurant Association.

Facts About City Services

• Water Utilities provides 960,000,000 gallons of water each year to Canyon residents. The water production has a peak capacity of 6,794,955 gallons per day. Canyonıs water comes from a well field near Umbarger and from the City of Amarillo.
• Each year the Wastewater Treatment Plant treats approximately 438,000,000 gallons of wastewater. Treated wastewater, known as effluent, is used to irrigate crops at the Cityıs land application site.
• More than 8,600 tons of trash are collected each year in the City of Canyon. There are 1,369 dumpsters throughout the city.
• Approximately 5,000 people attend events at the Cole Community Center each year.
• Almost 59,300 books, videos and other materials are checked out through the Canyon Area Library each year.
• Parks Maintenance crews spend about 4,500 hours annually to maintain athletic fields in the city. Approximately 7,500 people visit the city swimming pool each year.
• More than 1,927 building inspections are conducted each year by the Code Enforcement Department.
• The average response time by the Canyon Fire Department is four minutes. In an average year, the Department responds to more than 625 calls.
• Approximately 450 pot holes are repaired annually by the Street Department. The Street Department maintains 100 miles of paved streets each year.
• The Canyon Police Department responds to more than 3,915 calls annually.