Community leaders this morning greeted the possibility of a county sales tax increase from diverse viewpoints this morning. Some were openly disappointed by the proposal, which came on the heels of a campaign to add two commissioners to the county commission and hire a county manager to oversee government spending.
“If the county commission has done one thing by proposing this, they’ve made the case for the issues we were voting on. It’s not a matter of cutting costs, it’s a matter of ‘Where can I get more money?’” said Dale Davis, former Emporia mayor and city commissioner. “People have to be startled to see what the real issues were ... that government is not about saving money, it’s about spending money.”
The possibility cropped up during Thursday’s Lyon County commission meeting when Chairman Marshall Miller talked about a half-cent sales tax to help fund some items in the county’s budget.
“It was just a comment made,” Bob Davis, county commissioner and Dale Davis’ brother, said. “There are issues within the county that need to be funded and our thought is that would be a good way to fund the ambulance service.”
But Dale Davis said he was concerned about the individuals who would be paying increased taxes on food, clothing, cars and other items.
“This affects every citizen when they go into the store,” Davis said. “For every dollar they spend in this community, they’re going to pay more. ... They’re going to drive business away.”
Jeff Longbine, owner of Longbine Auto Plaza, shared that concern. Longbine said that the city’s “pull factor” for bringing in outside shoppers to Emporia had been dropped to .86 from 1 percent.
“We put ourselves at a disadvantage,” Longbine said. “Our pull factor represents the fact that we’re not getting people here to shop, and this is certainly not going to help that.”
What’s the money for?
Emporia Area Chamber of Commerce President Jeanine McKenna was concerned that the county was considering raising the sales tax rather than cutting costs.
“Are we living within our means?” McKenna said. “That’s what we need to question.”
Although only just broached, already there is some disagreement among county commissioners about how to use any additional revenue. One suggestion during Thursday’s meeting was to use the funds to help with road and bridge expenses.
“I don’t support that,” Bob Davis said. “I would rather have sales tax serve the whole public, meaning services like ambulance service and maybe the Senior Center and renovations on the fairgrounds.”
Davis said the commission as a whole agrees that the sales tax increase is good.
“But I definitely don’t want it used for bridges and roads,” Davis said. “We need to beautify Emporia more than we have.”
City could benefit
If the county should decide to raise its sales tax, some of the money would likely end up in Emporia’s coffers as well. By state law, City Attorney Blaise Plummer said, the money from a countywide sales tax has to be shared with the local cities, through a formula based on population and the total taxes levied by each government.
That’s not an absolute, though. A county can keep all the money if it can get a special bill passed by the Legislature. And if the money’s being used for a specific project, such as the recent tax to build the new Lyon County Courthouse, the ballot issue can specify that all the funds raised would go to the county.
That revenue-sharing doesn’t work in reverse, by the way. Sales taxes raised by a city stay in the city.
“The city gets to keep its sales taxes because we’re the only ones that voted on it,” former Emporia City Manager Steve Commons said. Commons is now an assistant city manager in Edmond, Oklahoma, where the local sales tax is 3.25 percent and the total sales tax is 7.75 percent.
“Sales taxes have been this city’s main source of revenue,” Commons said of his new city.
How and when to use sales taxes can be an important decision for a city or county, Plummer said. A local government only has a few different sources of revenue, he said, and keeping them in balance isn’t easy.
“There’s no magic to it,” Plummer said. “You look at surrounding counties to see what they’re doing with it. If your sales tax is out of balance, that can cause problems with retailers. If your property tax is out of balance, that can cause problems with homes and businesses. It’s a difficult decision, but it’s one a governing body has to make.”
He was pleased to hear that, if the county goes for a sales tax, some of the money might be used for ambulance services. How exactly to share those costs has been a contentious issue between the city and county for some time.
‘We’d be happy to talk with the county on that one,” Plummer said.
Commons said the county was likely looking to diversify its revenue stream.
“If I were in their shoes, I’d look to find ways to diversify my revenue stream away from the unpopular property taxes,” he said.
Issue on the table
Mark Schreiber, who had supported the five commissioners-county manager issues in this week’s election, said he was glad that the sales tax proposal had surfaced.
“I’m glad at least that Marshall brought the question up and is starting to look at it. I think diversifying the tax base is probably worthy of evaluation, not just rely on property tax,” Schreiber said.
The recent ballot initiatives were concerned with ways to increase revenue, as well as ways to control expenses, he said, and he would want that aspect of budget to be a consideration as the sales tax proposal is discussed.
“The county folks know their expenses best,” Schreiber said. “I’d like to see them come forward with some suggestions on how to control those expenses as well as raise revenue. ...To raise taxes on one side just to lower them on another, I’m not sure that’s a solution.”
Emporia City Commissioner Bob Agler, whose consulting firm works with county commissioners, also approved the introduction of a sales tax for discussion.
“I think it’s a good idea that they brought it up but I think that it’s something we probably need to get some research done on,” Agler said.
hottopics (anonymous) says...
Good Grief! We still cant understand why we are one of the highest taxed counties in Kansas, but we have no clue why? My property taxes have DOUBLED in 5 years. We cant' afford to be taxed anymore. Whats the incentive? I think the city should be putting shopping locally on the front burner. You say, "Shop Emporia", WHY? There isn't anything here to shop at. We all take trips to Topeka and Wichita because the only option here is Wal-Mart. Our mall is a echo and who can afford property owned by out state corporations with ridiculous lease prices to bring in business. Think about that!
November 10, 2006 at 10:45 p.m. ( permalink | suggest removal )
under_score (anonymous) says...
Is that our solution to every problem? Tax to spend? We have to have people on this commission that can THINK. I could teach a 5 year old to run the county if the solution to every monetary problem is to raise taxes. Emporia is not any better. We need to start cutting costs! We have seen property values over the past several years rise faster than ever, that means a LOT more tax money to the local governments but somehow they have managed to squander what should have created a surplus. Agler, while I'm sure he is a great accountant, should not be who we have looking into our problems. He knows too many people and thus could have a conflict of interest if he uncovers something. Believe me, to still be having budget problems in this environment someone is either incredibly ignorant or is crooked. Either way, they need to go.
November 11, 2006 at 8:48 a.m. ( permalink | suggest removal )
johnsie (anonymous) says...
It might be interesting to find out just HOW this idea was generated. Commissioner Miller is an avid member of the Chamber and has a city address. The Chamber, Gazette, and Steve Sauder just can't swallow defeat graciously. This cult will continue starting fires to keep the 5 Commission Issue alive in any way it can. I find the thought of a 5 member commission in this county down-right scary because of who is pushing it. I know it all stems from personal agendas and has nothing to do with what is best for the taxpayer. Sales tax is better then property tax - but as the true rural Commissioner said - "let's get the Courthouse paid for before we do anything".
November 11, 2006 at 5:43 p.m. ( permalink | suggest removal )
emporia123 (anonymous) says...
For Johnsie:
I am a confused rural resident.
I have a hard time understanding how the Lyon County Commission wanting to increase taxes has anything to do with The Chamber, Gazette Steve Sauder or the elections?
This sales tax increase was presented after the elections in a Lyon County Commission meeting.
Quit trying to stir things up.
November 13, 2006 at 9:16 a.m. ( permalink | suggest removal )
murchins (anonymous) says...
So, everyone voted against the 5-member commission because it would make our taxes go up and now the commission wants to raise the taxes anyway. If you raise taxes you will also be looking for a new job, you namby-pamby nerdnicks. You old boy "I got mine so to heck with everyone else" jerkwads. I'm sick of this "county vs. town" crap.
November 15, 2006 at 4:04 p.m. ( permalink | suggest removal )