Secretary of Revenue advises county
Friday, August 29, 2008
Lyon County has two options available to address the problem of the delay in collecting the county’s new 1 percent sales tax. The problem arose after voters approved the tax in the Aug. 5 election.
Voters overwhelmingly approved the sales tax, which was have been divided among the county and all the cities and towns in the county. Shortly after the passage, Lyon County learned from the Kansas Department of Revenue that the tax could not be collected because it exceeds a 1 percent sales-tax cap for the county.
Kansas Secretary of Revenue Joan Wagnon and Steve Brunkan of the department attended Thursday morning’s Lyon County Commission meeting to explain the decision and discuss options for the 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 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 1-percent cap or it can ask for special legislation to gain permission to collect more than a 1 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 Counties 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 days’ 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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