[Electronic-lan] LJW article on sales tax opposition

[Melinda]

http://www2.ljworld.com/news/2017/jul/06/local-group-wants-voters-reject-city-sales-tax-wou/


    Local group wants voters to reject city sales tax that would
    generate more than $100 million

July 6, 2017

For about the past 10 years, each time shoppers in Lawrence open their 
wallets to make a purchase the amount they pay includes an additional 
charge.

That charge, a .55 percent citywide sales tax, has generated millions 
annually for the city and will sunset next year unless voters renew it. 
One local advocacy group, Lawrence Sunset Alliance, is asking residents 
to vote no on renewal.

“In the past, I think a lot of things in this town have passed because 
there hasn’t been vocal opposition, or at least a discussion about a 
yes/no and what that means,” LSA treasurer Patrick Wilbur said. “This is 
a 10-year renewal and repurpose, so we’re committing a lot.”

The Douglas County Libertarians began the opposition group, but Wilbur 
said they would like to work with a variety of local groups as part of 
the campaign, which launched Thursday.

If the City Commission follows city staff’s recommendation, the renewal 
of the additional sales tax will be on the November ballot. If approved, 
the special tax would be in place from 2019 to 2029 and is projected to 
generate more than $116 million for city infrastructure, transit and 
affordable housing.

In a memo to the commission, city staff state that failure to renew the 
sales tax would have significant consequences on city operations, as it 
is the primary funding source for transit and a number of projects in 
the city’s capital improvement plan. Infrastructure projects include 
dedicated funding for residential street and curb maintenance, as well 
as other high-dollar road projects.

Wilbur said the main message of the opposition campaign is that sales 
tax is regressive, meaning that unlike property taxes, it 
disproportionately affects those with lower incomes.

“We’re basically putting the burden on lower-income people for these 
services,” Wilbur said. “These are all services that we could fund 
through the general fund if we wanted to.”

Currently, the .55 percent sales tax breaks down as follows: .3 percent 
for infrastructure, .2 percent for transit and .05 percent for expanded 
transit service. Under the upcoming sales tax renewal proposal, the .05 
percent would be repurposed to fund the city’s affordable housing trust 
fund. If not renewed by Lawrence voters, the taxes will sunset in March 
2019.

When combined with the county and state’s sales tax rates, Lawrence 
residents pay 9.05 percent on their purchases, which in Kansas includes 
groceries. The sales taxes are in addition to the 1 percent general city 
sales tax and generated $9.8 million to support infrastructure and 
transit in 2016.

The sales tax was passed with strong support from voters in a citywide 
election in 2008. Almost three-quarters of city voters, or 73 percent, 
approved the measure.

City staff are recommending that the City Commission approve an election 
for the sales tax renewal, which would allow voters to consider each of 
the three components of the tax individually. If renewed, the city 
projects the taxes to generate more than $63 million for infrastructure, 
$42 million for transit and $10.5 million for affordable housing over a 
10-year period.

The deadline for questions to be placed on the Nov. 7 ballot is Aug. 7 
and the City Commission must approve the ballot language no later than 
Aug. 1.

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