This Wichita suburb will see a sales tax increase. Here’s how much
Residents in Park City voted to raise the local sales tax by 1% starting in January.
The increase will bring the overall sales tax rate in Park City to 8.5%, which would match many cities in the county, Park City Mayor John Lehnherr said. The city estimates that will amount to roughly $2.47 per month more for each household.
A total of 649 votes were cast with 377 (58%) voting yes and 272 (42%) opposing the tax increase, according to unofficial results from the Sedgwick County Election Office.
The increase will not be applied to sales of prescription drugs, medical devices or food for the elderly or homebound, according to the city’s website.
Lehnherr said the money generated by the increased sales tax will go directly to the community to address priorities, including lower property taxes and better roads.
“I’m only saying those top two things because we sent out a survey and those two things were the top score,” Lehnherr said. “Property taxes relief and road repairs followed by some park stuff, walking paths, swimming pool.”
He did not provide any details Tuesday night.
“We will be seeking additional community input on the best ways the new revenue can be used,” Lehnherr said in a statement published on the city’s tax referendum page.
On the site, Park City officials contended the additional revenue would be paid mainly by visitors, with only 12% coming from shoppers who live in the Park City area.
The other 88% of tax revenue generated should “come from out-of-town visitors coming to Park City to shop and dine,” according to the statement.
When asked how the 88% figure came to be, Lehnherr said a study done by Buxton Retail Analytic Solutions gave Park City data to find out how much sales tax is generated from out-of-city visitors.