Manhattan, Kan (KSNT) – As voters across Kansas head to the polls, in Manhattan they will be faced with a sales tax question, one that might confuse some voters but could mean increased revenue for the city.
Manhattan voters will vote on a 0.5% sales tax increase for the city, but not the entire city. The proposed sales tax increase would only raise sales tax in the city limits of Manhattan within Pottawatomie county. That is the area east of Tuttle Creek Blvd. that includes Walmart, Menards and other retailers.
“Today we share in a county tax for economic development purposes it’s only in Riley County, so the sales being generated inside the city of Manhattan in Pottawattamie county are not being captured for that intensive purpose” said Deputy City Manager Jason Hilgers. “This will allow us to capture the sales tax in Pottawatomie County in Manhattan” he added.
According to the city, the proposed increase would increase current tax revenues from $3 million to $6.5 million if passed.
“70 percent would be dedicated back towards public infrastructure projects in the community and debt service associated with those, 20 percent towards job recruitment, retention, and economic development in the community and then 10 percent towards workforce housing” Hilgers said.
Essentially, if voters choose to pass the sales tax increase the sales tax in the Manhattan city limits in Riley County would remain at 8.95% while in the Pottawatomie area of Manhattan, the sales tax would increase to 9.45%. The sales tax would not increase city wide.
If passed the increase would take effect in January of 2023. The city of Manhattan has posted more details on their website, you can view them by clicking here.