The days are dwindling to when Allen County voters go to the polls Tuesday to voice their opinion on a proposed half-cent sales tax.
County Commissioners devised the proposal.
The proposed tax will generate approximately $1.2 million that will be designated to 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.
According to commissioners, the additional revenue from the sales tax will lower property taxes, though they have not committed by how much.
Commissioners presented what they deemed a “conservative estimate,” lowering the levy by 4 mills, or roughly $748,000. Commissioner David Lee noted at an Oct. 10 election forum that, in reality, it would likely be lowered by about 6.5 mills. “That was probably an error on our part in the way of marketing,” explained Lee.
The current county sales tax is 1.25%. Under that umbrella is a quarter-percent tax that brings in $682,000 and goes to Allen County Regional Hospital; a half-percent, $1,365,000 goes to the landfill; and a half-percent goes to the general fund.
If approved, the proposed tax would raise the county tax to 1.75%. When added to the state’s 6.5% sales tax and the City of Iola’s 1% sales tax, 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 .5%, would have a total sales tax of 8.75%.
The proposed tax would apply to almost any goods or services purchased in Allen County. According to the Kansas Department of Revenue, 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, a sales tax is applied.
