Lyon County addresses sales tax question
By Brandy Nance (Contact)
Originally published 09:03 a.m., August 28, 2008
Updated 09:03 a.m., August 28, 2008
Lyon County has two options available to them to address the one percent sales tax issue that surfaced following a positive vote in Lyon County on Aug. 5.
Voters overwhelmingly approved a one percent sales tax increase. The increase would have been divided between all the cities and towns in Lyon County. Shortly after the passage, Lyon County learned from the Department of Revenue that the tax could not be collected because it exceeds the one percent sales tax cap for the county.
Joan Wagnon and Steve Brunkan, of the Kansas Department of Revenue, attended this morning’s Lyon County Commission meeting to explain the decision and discuss options for Lyon County.
“I know it is a sensitive situation in this county,” Wagnon said. “You have voters who have approved the sales tax in your county and you want this to go through.”
Wagnon said the sales tax statute, 12-189 is confusing and many counties have misinterpreted it. Rawlings County is in the same boat as Lyon County, Wagnon said. The same issue happened with Sedgwick County.
There are options for counties who are in this position. The county can re-vote the tax to stay within the one percent cap or it can ask for special legislation to gain permission to collect more than the one percent tax, which was the case with Sedgwick County.
“The legislative fix is probably the easiest, fastest and cleanest and that’s what we recommend,” Wagnon said.
Wagnon said it’s best that the proposed bill for Rawlings and Lyon County be narrow for quick passage.
“ If it’s narrow, it will pass quickly,” she said. “I don’t think you want anything except the very narrow issue in your bill.”
Wagnon said the Kansas Department of Revenue stands behind Lyon County.
“We would stand behind you. We, the department of revenue, would be happy to support you in this effort,” she said.
If a bill is rushed through the legislature in January, it will be April before the sales tax can be collected. The state is required to give retailers 60 day notice before imposing the tax.
“If they could pass it timely, we’d have to give notice in February and March so it would go into effect on April 1,” Wagnon said.
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Posted by madpoet (anonymous) on August 28, 2008 at 10:12 a.m. (Suggest removal)
Too bad they didn't listen to Don Hill in the beginning. He asked if they wanted him to introduce special legislation last session. He was told, No thanks, we don't need it. This could have been avoided which makes it even more frustrating.
Posted by jayhawker (anonymous) on August 28, 2008 at 9:27 p.m. (Suggest removal)
I have heard that story about Don Hill's offer from several reliable sources. I understand that the County Commission discussed the matter with the County Counselor who told them that they didn't need it, and Don's offer was declined.
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