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Kansas lawmakers billed it as the “fairest” tax.
That could be part of the reason why a one-cent sales tax proposed by Kansas Gov. Mark Parkinson was approved late in the 2010 Legislative session.
Starting July 1, cities and counties will start to implement that tax increase across the board.
While the city of Pittsburg and surrounding areas will be affected, they are not the highest. Hiking statewide sales taxes one percentage point higher, to 6.3 percent, for three years produces some widely differing tax rates in cities, counties and other jurisdictions, the new tax tables from the Kansas Department of Revenue show.
The new tax rates customers will pay at the two stores, which are believed to be the largest single retail outlets in Kansas, aren’t the highest in the state. Shoppers in a newly emerging Hays hotel and retail development just north of that community’s main business district will pay a 10.55 cent tax on each dollar they spend beginning July 1. Shoppers in a small strip mall known as Goody’s Plaza just off Interstate 70 in Junction City are slated to pay Kansas’ second highest sales taxes, 10.3 percent, when the new taxes kick in.
The effects of the sales tax increase, according to most, is still an unknown.
“With our situation as a border community, that is where the concern lies,” said Blake Benson, Pittsburg Area Chamber of Commerce executive director. “We are already losing business in Missouri and how much business we lose because of this remains to be seen.”
In Pittsburg, the regular sales tax rate will jump to 8.3 percent, while the sales tax in the TIF District in north Pittsburg, will go to 8.6 percent. The concern is over the comparison to the sales tax rate across the border in Missouri. In Joplin, Mo. the sales tax rate currently stands at 7.825 percent.
Another southeast Kansas town that will see strong effects is Neodesha. Voters in the Wilson County town recently voted a one-cent sales tax increase for a new pool. Couple that with the new state tax increase and the overall sales tax rate will sit at 9.3 percent starting in July.
“In the big scale, it is not that much,” said Karen Porter, Neodesha Chamber of Commerce executive director. “I am more concerned, on the state level, with things like new car sales.”
There are about 63 taxing bodies among the 790 in the state where sales taxes will top out at 6.3 percent because no other local sales taxes exist to be added to the state base. There are two other districts — both of which are shopping strips in southern Johnson County — that will top 10 percent. Most others will land between the mid to upper 7 percent range in rural or thinly populated districts and mid 8 percent to upper 9 percent range in bigger cities or suburbs.
Kansas lawmakers billed it as the “fairest” tax.
That could be part of the reason why a one-cent sales tax proposed by Kansas Gov. Mark Parkinson was approved late in the 2010 Legislative session.
Starting July 1, cities and counties will start to implement that tax increase across the board.
While the city of Pittsburg and surrounding areas will be affected, they are not the highest. Hiking statewide sales taxes one percentage point higher, to 6.3 percent, for three years produces some widely differing tax rates in cities, counties and other jurisdictions, the new tax tables from the Kansas Department of Revenue show.
The new tax rates customers will pay at the two stores, which are believed to be the largest single retail outlets in Kansas, aren’t the highest in the state. Shoppers in a newly emerging Hays hotel and retail development just north of that community’s main business district will pay a 10.55 cent tax on each dollar they spend beginning July 1. Shoppers in a small strip mall known as Goody’s Plaza just off Interstate 70 in Junction City are slated to pay Kansas’ second highest sales taxes, 10.3 percent, when the new taxes kick in.
The effects of the sales tax increase, according to most, is still an unknown.
“With our situation as a border community, that is where the concern lies,” said Blake Benson, Pittsburg Area Chamber of Commerce executive director. “We are already losing business in Missouri and how much business we lose because of this remains to be seen.”
In Pittsburg, the regular sales tax rate will jump to 8.3 percent, while the sales tax in the TIF District in north Pittsburg, will go to 8.6 percent. The concern is over the comparison to the sales tax rate across the border in Missouri. In Joplin, Mo. the sales tax rate currently stands at 7.825 percent.
Another southeast Kansas town that will see strong effects is Neodesha. Voters in the Wilson County town recently voted a one-cent sales tax increase for a new pool. Couple that with the new state tax increase and the overall sales tax rate will sit at 9.3 percent starting in July.
“In the big scale, it is not that much,” said Karen Porter, Neodesha Chamber of Commerce executive director. “I am more concerned, on the state level, with things like new car sales.”
There are about 63 taxing bodies among the 790 in the state where sales taxes will top out at 6.3 percent because no other local sales taxes exist to be added to the state base. There are two other districts — both of which are shopping strips in southern Johnson County — that will top 10 percent. Most others will land between the mid to upper 7 percent range in rural or thinly populated districts and mid 8 percent to upper 9 percent range in bigger cities or suburbs.
Some question the need for a statewide sales tax increase. With the Kansas Legislature facing a large shortfall, it was either cut services or raise taxes.
A study done by Professor John Wong, interim director of the Hugo Wall School of Urban and Public Affairs at Wichita State University showed that cutting more from the state budget would result in the loss of 5,177 jobs across Kansas. On the other hand, a one-cent sales tax increase would result in the loss of 3,231 jobs.
“As far as any positives, the tax will hopefully prevent any further cuts to Pittsburg State University,” Benson said.
Despite the tax increase facing the state on July 1, there is still other positives.
“Nobody wants high, high taxes,” Porter said. “But, with what you get here in Neodesha it is well worth it.”
Matthew Clark can be reached at matthew.clark@morningsun.net or at 620-231-2600, Ext. 140
