Council looks at sales tax increase
10:19 p.m. Tuesday, July 15, 2008
A one-half percent increase in sales tax was one of the many money issues the City Council discussed Tuesday evening.
There was a lot of talk tonight about new projects that you'll have to pay for.
A controversial plan to build a road, known as Elevation Parkway, that would ease traffic at Fairlawn and Interstate 470. City staffers want $1.4 million to buy property for the project. Some Council members were concerned the project would create too much of a tax burden on future landowners, but this one passes 5 to 4.
Staying with traffic, the Council gave the green light to a project to install a traffic light at the intersection of Interstate 470 and Huntoon.
The lights would be paid for through loans to the City. Mayor Bunten vetoed a similar project before, because he wants to pay for the lights in cash. The City already has more than $180 million in debt.
"If these well planned projects are vetoed and we don't override the veto," said councilman Jeff Priesner, "that's basically painting the Council into a position where we'll have to support some sort of sales tax initiative for infrastructure improvements."
That increasing sales tax could be here sooner than you think. At the Council's work session Tuesday, members of the Topeka Chamber of Commerce said they supported a half percent sales tax increase to improve life in Topeka.
That means every time you buy, you'd be paying for improvements in roads and for downtown. Chamber members say the increase would rake in $12 to $13 million a year. The Council also supports the idea, but Topeka voters would have to go to the polls to approve it.
"Business leaders don't like increasing taxes anymore than anybody else," said Chamber Chairman Carl Koupal. "But we've come to the conclusion that there are needs in the community that need to be addressed."
Next up, your property taxes. Tonight was the deadline for the Council to put a cap on how high your property taxes could go next year.
Not much debate on this one as Council members agreed to set a cap on the mill levy of 35.299 mills. That's a 2.84 mill increase which translates to about $33 on a $100,000 home.
The Council can't go any higher than that for next year's budget.
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