As the days tick down to the Nov. 5 election, Allen County voters are preparing to cast their ballots on a proposed half cent sales tax. Commissioners have touted the proposed tax will generate approximately $1.2 million that will be designated solely for Allen County emergency medical services (EMS).
The county currently pays a $2 million annual contract (August 2024 to July 2025) for EMS services out of its Ambulance Fund. Any repairs to ambulances are an additional cost. Commissioners have said the additional revenue from the tax could also potentially help lower property taxes by an equal amount. Presently, they estimate the mill levy would be lowered by 4 mills, or roughly $748,000.
In interviews with a handful of area business owners as well as those who work with the public, opinions varied.
Some chose to weigh in, but asked that their opinions not be shared. Others refrained altogether.
GEORGIA MASTERSON of Humanity House, a local nonprofit that helps the poor, said an increase in the sales tax would adversely affect those it serves. Humanity House helps the community through various programs, including a food pantry, free laundry services, and its community garden.
“I’m not for it,” Masterson said. “It will definitely increase the hardship on those people who already can’t afford what they need to keep their families fed.”
The cost of groceries has become an increasing concern for many. The state legislature plans to eliminate the sales tax on groceries, effective Jan. 1, 2025.
Passing the half cent EMS sales tax would essentially replace the eliminated grocery tax. The Kansas Department of Revenue (KDOR) acknowledges that local and county sales taxes cannot apply to any item that isn’t subject to the state sales tax. There has been some confusion statewide on whether this means the county sales tax would apply to groceries since legislators eliminated the state grocery sales tax.
According to the language of the bill, though, local and county sales taxes would still apply to grocery items. This is because the state sales tax on groceries hasn’t been repealed — it has been merely reduced to 0%.
In fact, the proposed tax would apply to almost any goods or services purchased in Allen County. “Primarily, the increase to the cost of food is the biggest challenge for those we serve,” noted Masterson. “But it also increases the cost of everything.”
According to the KDOR, county sales taxes are imposed on the same items as the state sales tax. This includes the retail sale, rental, or lease of tangible personal property; charges for labor services to install, apply, repair, service, alter, or maintain tangible personal property; and admissions to places providing amusement, entertainment, or recreation services.
Whether you are leasing a car, buying new clothes or a refrigerator, going to the movie theater, or having an HVAC system installed, sales tax is applied.
Masterson says she would suspect that most of the people who the foundation serves are not even aware of the proposed sales tax, which is a concern.
CAPPER JEWELRY owner Carla Capper is in support of helping EMS, but she is not in favor of the tax. “The sales tax is so high now, although I have been told it is higher in other areas,” she said. She believes people will be watching more of what they buy and being more mindful before using their credit cards. “It all adds up,” she said.
Capper doesn’t believe her sales will be affected tremendously by the tax, however. “What we sell is more of a want than a necessity,” she explained. “It won’t deter someone too much from buying that ring for their sweetheart.”
