A little more than a week before the primary election on Aug. 5, some questions are still lingering about the proposed countywide 1 percent sales tax hike.
Dan Slater, Lyon County controller, offered some insight on the issue.
“The (2009) budget has nothing to do with the sales-tax question,” Slater said. “The sales tax is after the fact. We’re not going to use the sales tax to raise or lower the budget.”
The sales tax question rose out of the need for an added source of income for the county and the towns in the county. A lot of the cities and towns in Lyon County were pursuing sales tax questions of their own.
The Lyon County government has specified that it would use the revenue from the tax to reduce property tax in Lyon County. This means for all Lyon County residents — no matter what town they live in.
The sales tax collected would be collected by the state of Kansas. Lyon County is not a collector in this case, Slater said. The sales tax would sunset in five years. The first half of the sales tax collected will be divided in half. The first half is distributed by population as of the last census to all cities in the county. Rural population monies would be given to the county. The second half would be divided by the percentage of property tax on the last tax abstract. This translates into about 5 percent of the sales tax going to smaller cities in Lyon County, about 41 percent to Lyon County and 54 percent to the city of Emporia.
“As many of you are aware, our smaller cities have needs for projects that go beyond the funds that can realistically be raised by property tax,” a written statement provided by Slater stated. “This would be one way to fund those projects. ...”
Slater said the sales tax would be used to reduce the mill levy in Lyon County, meaning a reduction in property tax. The county would set a mill levy reduction each year. For example, if the county lowered the levy by 4 mills using sales tax, any excess would be put into a multi-year capital outlay fund. The money could be used to fund capital projects or could be used to keep the county running in a disaster.
The statement said the county’s plan is to reduce reliance on property tax at the county level.
“The county will not use this tax as additional money,” the statement read. “This is not a license to increase budgets and will not be viewed that way. This is, from our standpoint, a way to make buying a home and living in a home in Lyon County a little more affordable.”
Slater said the county cannot tell cities how to spend the money.
The county’s current 1/2 percent sales tax is being used to pay off the Lyon County Courthouse, which originally was scheduled to be paid off in 2019. At the current rate of repayment, Slater said, the courthouse could be paid off in a few years.
builderboy (anonymous) says...
Hey how about this...when I spend more than I make, I start cutting my expenses. Perhaps the muncipilites involved could do the same. Some examples I've seen include the following. The county road and bridge department could start putting two people in trucks going to the same location. I've witnessed muiltiple times four pickups and four guys on the same location. Usually with only two guys looking like they are doing something. Public works with the city could follow their lead, they appear to do the same. Or how about if roads and inferstructure are needing repairs, then maybe other programs need to be cut for the good of many, instead of the benfiet of a select few.
When times get tough we all need to tighten our belts. Not just add more taxes to the masses.
I didn't have a choice when the city raised my water, sewer, trash, or property taxes. We have a choice with this, like nancy regan said " Just say No !!! "
July 28, 2008 at 8:11 p.m. ( permalink | suggest removal )
native_emporia (anonymous) says...
builerboy: I agree!! It is time that government does what the rest of us are already doing with our personal budgets, CUT SPENDING. The economy is not going to recover over night, in fact the projections I hear say anywhere from 4 to 7 years to bounce completely back. If the county doesn't cut back on spending now, they will continue to raise taxes and keep the rest of us from recovering. I am not willing to keep cutting back my own budget just so commissioners don't have to cut back their own spending.
July 28, 2008 at 9:39 p.m. ( permalink | suggest removal )
jayhawker (anonymous) says...
Two important points to consider when voting on the proposed increase in the sales tax:
1. No one needs reminding that we have lost untold jobs recently. The strategy for local economic recovery is to bring in retail stores. We already have a 1/2 percent tax to pay for the new courthouse. If we add this additional 1 percent, that will make us 1 1/2 percent higher than any place around. This tax is paid on retail goods. No retailer is going to locate here if it is that drastically disadvantaged given the proximity of Kansas City, Wichita and Topeka (heck, even Strong City). Consequently, this tax is totally inconsistent with our strategy for economic recovery.
2. Did you catch these quotes from Mr. Slater?: a) "As many of you are aware, our smaller cities have needs for projects that go beyond the funds that can realistically be raised by property tax,” a written statement provided by Slater stated. “This would be one way to fund those projects. ...” b) if the county lowered the levy by 4 mills using sales tax, any excess would be put into a multi-year capital outlay fund. The money could be used to fund capital projects or could be used to keep the county running in a disaster.
In other words, it IS a tax increase. Tax increases in this economy is the worst thing that could be done if we are serious about economic recovery.
July 29, 2008 at 12:25 a.m. ( permalink | suggest removal )
netloafer (anonymous) says...
Read the first sentence: “The (2009) budget has nothing to do with the sales-tax question,” Slater said. “The sales tax is after the fact. We’re not going to use the sales tax to raise or lower the budget.”
About a week ago the county commissioners noodled out their first pass on the 2009 budget - it meant a five mil increase in property taxes. The second pass - 1.7 mils. The commissioners said they were going to keep the increase to two mils or less.
Slater's words look a lot like the old bait and switch to me. It could be that we get an increase in sales taxes, topped off with an increase in the county mil levy. Then the city and school district are going to chime in.
July 29, 2008 at 5:47 a.m. ( permalink | suggest removal )
paulkersey (anonymous) says...
Well as being the city is in debt to the tune of $40 million (+/-), and over half of the tax revenue the city gets goes to paying interest, something must be done. If business as usual continues in Emporia for another two or three years, the city is looking at being the first city in the state of Kansas to declare bankruptcy. The city has been grossly mismanaged for the last 15+ years, and we are now reaping what we sowed. I do not like an increase in taxes more than anyone else, but I feel this is necessary for the very survival of the city.
July 29, 2008 at 10:57 a.m. ( permalink | suggest removal )
momus (anonymous) says...
But is a higher sales tax the best way to ensure that survival? I would submit a resounding NO to that question. This tax puts additional pressure on disposable income AND businesses already hurt by a rapidly changing economy.
Additionally, this tax puts more pressure on the community of Emporia as a whole, by putting it in the position as bread winner for other communities. Refer to the statement above: “As many of you are aware, our smaller cities have needs for projects that go beyond the funds that can realistically be raised by property tax,” a written statement provided by Slater stated. “This would be one way to fund those projects. ...” The vast majority of sales tax is collected in Emporia, and supported by Emporia's infrastructure. I love our smaller communities, but I'm not sure its fair to expect a reallocation of resources from a community that is struggling to the extent Emporia is right now.
July 29, 2008 at 11:49 a.m. ( permalink | suggest removal )
paulkersey (anonymous) says...
momus,
I appreciate your well thought out comments on this forum, you are definitely a very welcome (by me at least) member of this board. Having said that, I am going to respectfully disagree with you on this issue, and here is why. How many people from the smaller communities shop in Emporia? I would venture to guess the number is north of 95%. These people are paying sales tax that goes to benefit a place they don't live in. The amount given to outlying towns would be small, less than 5% in most cases. I feel that it is fair that some of the sales taxes go to outlying towns, because I would venture to guess that 5% of Bluestem's sales are to farmers from Olpe, or that a small percentage of Wal-Mart's sales are from people in Neosho Rapids, or people from Americus shop at Reebles. The city should definitely get a majority of the taxes, but not all.
July 29, 2008 at 12:26 p.m. ( permalink | suggest removal )