One important discussion item around town regarding the possible library expansion is retail sales tax vs. property tax. I have heard numerous times that people are fearful of property taxes being raised. They are not!
And not everyone understands this distinction.
Andrea Seaton, Economist with Kansas Farm Management Association that works with farmers and ranchers of Hamilton County explained,
“Sales tax is a one-time tax that is imposed on consumers for consumption of goods and services in Hamilton County such as shopping at local grocery stores or dining at local restaurants vs. Property tax that is an annual tax on the value of personal property you own such as a car, boat, etc.”
The 0.5% retail sales tax would start April 2023 and continue until the project is paid off. The project has a sunset clause, meaning the tax is removed once it is paid off.
As a sales tax, people living outside Hamilton County will contribute when they eat here, stay the night at Boarders Inn and Suites, use the Sand Park, buy groceries here, and more.
The amount collected will not exceed $2.8 million. While the loan is set for 20 years, running the numbers shows a likelihood for it to be paid early.
Our current sales tax rate is 8.5% and if passed, would be raised to 9% until it is paid off. Inflation has been built into the projects funding.
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