Allen County commissioners will send a proposal for a half-cent sales tax increase to Allen County voters this November, approving the measure at their meeting Tuesday. Revenue from the sales tax would be used to fund Allen County’s Emergency Medical Services (EMS). A last-minute revision was made to the resolution changing it from an open-ended tax increase to requiring the public’s approval every five years.
If it passes, the county sales tax will rise to 1.75%. Currently, the county sales tax sits at 1.25%. A quarter percent goes to Allen County Regional Hospital; a half percent to solid waste; and the other half percent to the general fund. The tax supporting the hospital also goes before the public every five years.
When added to the state’s 6.5% and the City of Iola’s 1%, Iolans would see their total sales taxes increase from 8.75% to 9.25%. The communities of LaHarpe and Gas would see the same increase. Humboldt, with a city sales tax of 1.75%, would have a total sales tax of 10% with the increase. Moran, with a city sales tax of 0.5%, would have a total sales tax of 8.75%.
In 2018, Neosho County voters approved a similar arrangement, passing a countywide 0.75-cent sales tax to fund the county’s ambulance services. That tax heads to voters for approval every decade. The total sales tax for the city of Chanute is 9.5%, while Neosho County’s total sales tax is 1.75%.
Allen County commissioners have budgeted $2.2 million for EMS in their 2025 budget, with approximately $1 million coming from property taxes. The half-cent sales tax, which would take effect in April 2025, is expected to generate approximately $1.2 million per year. The solid waste half-cent sales tax generated $1.365 million in revenue last year and $1.343 million in 2022, according to Crickett Maley, Allen County treasurer.
The commission’s goal with the sales tax increase is to fund EMS without relying entirely on property taxes, allowing the commission to potentially lower property taxes proportionally in the future. The ballot proposal, however, includes no language or mechanism guaranteeing property taxes will be lowered. While current commissioners have been clear that is their intent, the half-cent sales tax increase is not directly tied to property tax rates.
Property taxes are paid by those who own property in Allen County, while sales taxes are paid by everyone, including renters and non-residents passing through the county. Sales tax rates are the same for everyone. Taxes that are uniformly applied regardless of income can be considered regressive because they take a larger percentage of income from low-income earners than from middle- and high-income earners.Voters will decide the measure’s fate on Tuesday, Nov. 5.
TUESDAY’S MEETING also saw commissioners approve the county’s 2025 budget, which spans the calendar year. The 2025 budget allows the county $22.9 million for expenditures. The Road & Bridge fund, with a budget amount of $3.7 million, is the largest single special purpose fund.
Beforehand, a special hearing was held Tuesday at 9 a.m., as the county’s budget exceeded the revenue neutral rate. Four individuals addressed the commission during the hearing. Rex Heap of Humboldt, Mike Bright of Petrolia, Curtis Weiland of Petrolia, and Steve Green of rural Moran all voiced their grievances about rising property taxes.
The revenue neutral rate is a particularly vexing issue. In short, the RNR is the mill levy needed to generate the exact same amount of property tax dollars as the year before, using the current tax year’s assessed valuation. The Kansas Legislature passed a law in 2021 requiring taxing jurisdictions to send taxpayers notification anytime they exceed the revenue neutral rate and to hold a public hearing.
Sounds simple, but the devil is in the details. Assessed valuations for Allen County continue to increase, something the commissioners do not control. So even if commissioners leave mill levy rates the same, the county takes in more income, exceeding the prior year’s revenues, and the revenue neutral rate as well.
And while it may be thin gruel for aggrieved taxpayers, it’s worth noting that Allen County commissioners have consistently lowered the mill levy. Allen County’s mill levy for 2025 is 59.6, down from 60.4 in 2024, 61.3 in 2023, and 61.1 in 2022.
Commissioners also approved budgets for Rural Fire Districts 2, 3 and 4, and Sewer Districts 1 and 2. In these cases, the districts raised their mill levy rates, exceeding the revenue neutral rate. The mill levy rate for each fire district is now 5.0, while Sewer District 1 will raise their mill levy to 9.0 and Sewer District 2 to 10.001.
