Special to Reflector-Chronicle
The City of Abilene reminds businesses located within the corporate limits of Abilene that the retailers’ sales tax has changed effective April 1.
The previous sales tax rate for the City of Abilene was 8.15 percent and is now 8.4 percent.
In November, the citizens of Abilene approved a 0.25 percent retailers’ sales tax for the purpose of creating a dedicated funding source for a Local Street Improvement Program. The revenue generated by the sales tax will help the city “catch up” on the maintenance of collector and residential streets that do not currently have a funding source.
“The sales tax is estimated to generate about $2.9 million over the 10-year period, which will allow the city to address about 8.5 miles of the approximately 60 miles of public streets,” said Mayor Dennis Weishaar. “This is equal to about 14 percent of the public street system.”
The 0.25 percent sales tax will sunset, or expire, after 10 years.
It is the city’s understanding that local retail businesses were notified of the change to the local sales tax rate by the Kansas Department of Revenue. The department website provided notification to business owners when businesses remitted sales taxes in January; KDOR no longer provides paper notification of sales tax changes as of several years ago.
When the City of Abilene originally proposed the increased sales tax, the State of Kansas’ portion of the sales tax was anticipated to decrease from 6.3 percent to 5.7 percent on July 1. The Kansas Legislature is currently in the process of debating this proposed decrease in sales tax; the final sales tax rate may vary from the anticipated 5.7 percent based on the Kansas Legislature’s budget.
“The city understands the changing sales tax rates can be confusing and onerous for local businesses,” said City Manager David Dillner. “By collecting the additional 0.25 percent sales tax, our business partners will help the City of Abilene implement its Local Street Improvement Program. The city greatly appreciates the business community’s cooperation with respect to this issue.”
The City of Abilene reminds residents that shopping local will generate revenue that will be used by the City to do major repair projects throughout the local street system.
Questions regarding the retailers’ sales tax may be directed to City Manager David Dillner at 785-263-2550.