Understanding the Half-Cent Sales Tax

Sales Tax Overview
McPherson street infrastructure is currently funded by a half-cent sales tax, which was instituted by public vote in 2010. The half-cent sales tax generates approximately $1.5 million annually, and more than 25 street projects have been completed during the past seven years using tax dollars collected.

Why does the sales tax need to be addressed now?
The half-cent sales tax can only exist for ten years as mandated by the State of Kansas. McPherson's current half-cent sales tax will end on December 31, 2020. Addressing the issue NOW allows for responsible budget planning and uninterrupted street improvement projects. Renewing the half-cent sales tax NOW provides adequate time to gather public input about future projects. Establishing the half-cent sales tax NOW ensures funding is available to address residential street concerns.

What are the three most important facts to know?
1) The half-cent sales tax is NOT a new tax. It is an extension of the sales tax already in place.
2) The City of McPherson receives an estimated 30 percent transference from sales tax. This means 30 percent or more of sales tax collected is from patrons living outside McPherson, which lessens the tax burden on City residents and allows for continued road improvements.
3) A vote YES will renew the current half-cent sales tax for another 10 years. A vote NO will result in the current half-cent sales tax ending on December 31, 2020, and the City will need to identify an alternative funding source for street improvements.

Paving the Future Resources