LJWorld.com weblogs Town Talk
Posted
by Chad Lawhorn
August 19, 2008 at 1:59 p.m.
A different type of sales tax increase
Advertisement
Giving companies a break on the amount of taxes they must pay - a property tax abatement - has long been a controversial subject in Lawrence. But what about government giving businesses the authority to charge customers an extra amount of tax? Should that draw ire as well? Beats me, but I am sure the subject is going to get more attention at City Hall. Already the City Commission has given one business the authority to charge an extra tax. The Oread Inn hotel project near the Kansas University campus [will charge an extra 1 percent sales tax on all its sales.][1] In other words, if you stay at The Oread or eat at its restaurant, you'll pay an 8.3 percent sales tax instead of the normal 7.3 percent sales tax charged everywhere else in the city. The development group of the hotel - which includes Lawrence businessmen Thomas and Tim Fritzel and Todd Sutherland - will get to use the extra 1 percent in tax revenue to pay for the hotel's underground parking and other infrastructure, such as road improvements near the hotel. The extra sales tax is part of what's called a transportation development district, a state-created incentive that is used regularly in Johnson County communities. Now a second Lawrence development [wants the same type of deal.][2] Developers with the proposed Bauer Farms project at the northeast corner of Sixth Street and Wakarusa Drive, want the ability to levy an additional 1 percent sales tax in the development. City commissioners haven't yet approved that request. Instead, they'll consider adopting at their meeting tonight a new policy concerning the subject. You can read all about the details [here.][2]But forget the fine details for a moment. What do you think of the general concept? Are you OK with one development charging you one sales tax rate, and another across the street charging you a higher rate? But what if, as is often argued, these special taxing districts are the key to the project being built or not built? Is keeping the city's tax rate uniform worth losing out on a major new development? In these tight economic times, they're questions that probably are going to get asked more often. [1]: http://www.lawrenceks.org/web_based_agendas/2008/02-12-08/02-12-08h/oread_subsidy_feasibility_analysis.pdf [2]: http://www.lawrenceks.org/web_based_agendas/2008/08-12-08/08-12-08h/bauer_farm_tdd_request.pdf
- Republican tax plans would increase state revenue, analyses say May 22, 2013 · 23 comments
- Blog: GOP tax plans would increase taxes on low-wage Kansans, decrease taxes for high-income Kansans, report says May 23, 2013 · 6 comments
- Blog: More on city recreation center bids, and a possible city policy on drone use? May 23, 2013 · 7 comments
- Blog: FreedomWorks urges Legislature to reject Common Core reading and math standards May 21, 2013 · 32 comments
- City commissioner wants state to revoke nightclub's liquor license May 21, 2013 · 83 comments
- Blog: Plans filed for restaurant/retail on South Iowa site once proposed for Olive Garden May 23, 2013 · 14 comments
- City commissioner wants review of city's storm shelter policies in wake of Oklahoma tornado May 22, 2013 · 18 comments
- Opinion: Why gay role models matter May 23, 2013 · 10 comments
- Weekday graduations get mixed reviews from parents and families May 22, 2013 · 16 comments
- Blog: Kansas science and math teachers easily recruited away May 20, 2013 · 56 comments
- No consensus on McLemore's draft position after lottery May 23, 2013
- Off the Beaten Plate: Black Forest Crepe at A.B.'s May 23, 2013
- 100 years ago: 'The vulturous Kaw triumped' over Billie Bob Atkinson May 23, 2013
- Hillcrest teacher honored with annual 'Bobs' Award' May 22, 2013
- Two men face charges in Sunday morning shooting May 22, 2013
- House Republican leaders propose 1.5 percent cut to higher education for each of next two fiscal years May 21, 2013
- KU student killed in crash on U.S. Highway 59 May 17, 2013
- Opinion: Wayne Selden sizes up recruits May 21, 2013
- Opinion: Why gay role models matter May 23, 2013
- Free State softball confident in championship chances at state May 23, 2013
Comments
Catalano 4 years, 9 months ago
Oh for crying out loud. Where is Sven on this one?
Lynn731 4 years, 9 months ago
No only no, but hell no! I will not stay at a hotel, or patronize a business that is allowed to raise the sales tax just for their business. Thank you, Lynn
Keith 4 years, 9 months ago
I thought the development community was reflexively against increased taxes. Oh I get it, increased taxes are ok as long as someone other than the developer pays them.
SMe 4 years, 9 months ago
Sure I'm fine with it and I hope others will be just as fine with it as I am and NEVER, EVER, NEVER spend one thin dime in their facilities!
Commenting has been disabled for this item.