Archive for Thursday, March 4, 2010
KCK residents to vote on sales tax increase
March 4, 2010
There has been some confusion throughout Wyandotte County regarding the Unified Government’s recent approval to have a sales tax election in April.
But residents in Bonner Springs and Edwardsville have nothing to worry about as UG officials set the record straight that the proposed 3/8-cent sales tax increase will only affect Kansas City, Kan.
“I have had questions from several people who were confused on the issue,” said Bonner Springs Mayor Clausie Smith. “At least one TV station had it wrong, too. There was confusion before the unsuccessful Edwardsville sales tax election in the fall. Bonner residents need to understand that they do not vote on the sales tax nor will they pay it at local businesses. This is a KCK issue.”
The current sales tax in Bonner Springs is 8.05 percent, and the current sales tax in Edwardsville, following a failed attempt at an increase in November 2009, is 7.3 percent.
Smith said the last sales tax increase Bonner Springs had seen was a quarter of a cent to fund the new library. He said this increase was approved by 80 percent of the voters. Before that, there was an increase of another quarter of a cent for the aquatic center, which he said was approved by 60 percent of the voters.
“Right now, there are no plans to ask for a sales tax increase, nor do I see that happening in the future,” he said. “There could be a statewide sales tax increase, which has been recommended in Topeka, that would be approved by the state Legislature.”
Until then, Kansas City, Kan., residents will be asked to decide on April 13 if a 3/8-cent increase is in their future.
Edwin Birch, Unified Government public information officer, said the proposed sales tax increase was the result of the current economy.
“Increasing unemployment and slower consumer spending negatively impacted sales tax collections,” he said, adding that the sales tax revenues have slipped by $2.2 million. “And the Kansas Legislature, facing its own budget crisis, slashed millions in funding promised to the Unified Government.”
In addition, he said the state’s elimination of the machinery and equipment tax on businesses is costing the Unified Government $5.6 million annually in lost revenues, and a drop in assessed values on residential and commercial properties has reduced property tax revenue by $8.1 million.
If voters approve the sales tax increase, Birch said, it would raise an additional $6 million annually for the UG. There would be additional $2 million from the Village West area that would be put toward paying off STAR Bonds.
The tax is expected to be used in two areas, he said.
“The new revenue raised by the tax would pay for public safety services and community infrastructure projects, including street repairs and curbs and sidewalks in neighborhoods,” Birch said.




Comments