Frequently asked questions about the Park City Sales Tax Referendum.
Did the Mayor and City Council solicit the input of local citizens before developing the Sales Tax Referendum?
Yes. Our city leaders sought and received input, direction and suggestions from engaged residents and businesses across our community. Their goal is, and always will be, to allow our families to provide their insight needed to smartly manage City Hall in an open and transparent manner. We are committed to making sure our policies and spending priorities reflect the wishes of our community and taxpayers.
How will the Referendum impact our sales tax rate and property tax rate?
The Sales Tax Referendum would increase our sales tax by only 1%, putting us at the same sales tax rate as most other cities in Sedgwick County. The estimated impact on the average Park City resident will be around $2.47 per month. The Referendum will NOT increase the property tax rate for Park City homeowners or businesses. In fact, with passage of the Referendum, the additional revenue from the added sales tax paid primarily by visitors to our city will allow City Hall the opportunity to provide a reduction in our current property tax rate.
How much of the new sales tax revenue will be paid for by Park City residents and how much by visitors to our city?
Using our streets and infrastructure, thousands of visitors come through Park City every day to shop and dine. If approved by voters in August, the Sales Tax Referendum will provide a new funding source where 88% of the new sales tax revenue will come from these out-of-town visitors spending money in Park City. Only 12% will come from shoppers in and around Park City.
With voter approval, how will the Sales Tax Referendum impact city services?
When it comes to determining how these additional tax dollars would be spent, our city leaders will continue to work with and listen to our families, taxpayers and businesses on the best and most fiscally responsible services and projects to fund like roads, parks and public safety.
How will the Referendum impact our economy and efforts to attract new jobs?
This investment of about $2.47 per month for the average Park City resident will afford us the revenue to offer incentives that attract and support new growth and economic development. This will allow for new shopping, dining and family entertainment options for Park City families and keep their spending at home instead of forcing residents from going to other cities for their entertainment needs.
Are there sales items that would not be impacted by the additional sales tax?
Yes, there are many exceptions. If approved by voters, the Sales Tax Referendum will not impact prescription drugs, medical devices, or any food that is used to provide meals for the elderly or homebound. These will be exempt and will not be subject to a sales tax. Please check with the State of Kansas for a more detailed list of purchases that are exempt from sales tax.
Should voters approve the Sales Tax Referendum, does Park City have policies in place to make sure these tax dollars are spent efficiently?
Yes. Park City has long-standing policies in place to make sure our tax dollars are spent efficiently. Our team of financial professionals will keep a close eye on the spending approved by voters. Our best practices approach has helped City Hall earn high ratings from our auditors for accountability and transparency.
Upon approval of the Sales Tax Referendum, when will the additional tax take affect?
With voter approval, the new sales tax rate will start January 1, 2024.
Who do we contact if we want more information about the Sales Tax Referendum?
Park City leaders are committed to transparency. Should you have any questions or would like more information please us call 316-744-2026.