County sales tax to decrease
Sales tax rates in the county will drop by half a percent July 1, when a five-year-old special tax imposed to build a $3.5 million jail expires.
County Clerk Tina Spencer said the county would continue to collect revenue from the tax in July and August from sales occurring before July 1.
Enough money to pay the bond on the jail, which was completed in September 2012, was collected in March, and the county notified the state to cancel the tax.
“The State of Kansas requires an entire quarter’s notice to cancel the tax at the beginning of the next quarter,” Spencer said.
Money has been paid into an escrow account at Security Bank of Kansas City because the bond cannot be called until a later date, Spencer said.
“I believe that they will pay off our bond on Dec. 1, which is the earliest allowed,” she said.
The tax is expected to yield $300,000 more than the cost of the jail.
“Those funds should be spent for things that are related to the function of that building, if needed,” Spencer said. “However, if not needed for those purposes, they could potentially be placed into the county general fund, which can pay any expense of the county.”
A decision about how to use the excess funds will be made during this year’s budget process, Spencer said.
Last modified June 14, 2018