June 30, 2010

Why No Sales Tax Options to Offset City Woes?

Below is a letter I sent to the NDN today:

Over the past few days and weeks, I’ve had calls from patrons (and even seen a letter or two in the paper) asking “Why not raise the sales tax instead of a property tax?” That is a GREAT question! Anytime we can get a visitor from outside of Neosho to pay a portion of our taxes, that leaves less for us to supplement.

But there is ONE problem: The amount of sales tax we can charge is limited by state law.

For the city of Neosho, we already collect the maximum allowed on our General Fund sales tax – that amount is 1%. We also collect the maximum allowed on the Fire Protection sales tax – 0.25%. Those two funds are where the city is facing the largest shortfall. We can’t, BY LAW, raise those two sales tax rates any higher…even with a vote of the people.

I hope that helps answer the question.

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