Legislators have advice for 1 percent sales tax proponents: Be specific

Posted 3/24/16

As local governments mull the possibility of asking for Park County to vote for an additional fifth penny of sales tax this year, Reps. David Northrup and Dan Laursen, both R-Powell, say voters need specifics.

An attempt to raise the general …

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Legislators have advice for 1 percent sales tax proponents: Be specific

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It may be called a general sales tax, but the fifth penny will never be approved in Park County by trying to sell it in general terms.

That’s the opinion of two Powell legislators with connections to the agriculture community.

As local governments mull the possibility of asking for Park County to vote for an additional fifth penny of sales tax this year, Reps. David Northrup and Dan Laursen, both R-Powell, say voters need specifics.

An attempt to raise the general sales tax in the county from 4 percent to 5 percent to fund city and county infrastructure needs failed four years ago.

Both Northrup and Laursen said people want to know exactly what the additional money would be used for.

“I expressed this to many in the local governments last time this was defeated,” Laursen said.

“I can support the 1-cent increase,” Northrup said, “but they need to tell us what they’re going to do with it. Specific projects really need to be delineated.”

Northrup, who farms on the Willwood south Powell, said “infrastructure” is not specific enough.

“We need to see a benefit from the 1-cent,” he added. “What sidewalks or sewers are they going to replace? I would rather do that and give them the money than have it become a slush fund. They may get to buy some equipment or keep Joe ‘on,’ but that’s not specific enough. They need to delineate a project.”

Laursen farmed until 11 years ago when he moved into irrigation district and water management positions. He said he leans to the specific purpose type of sales tax.

“A specific project which is well defined and has an ending date would have a better chance,” he said. “We have passed these before. Personally, I am one who might be in favor of a tax increase for specific projects. List the projects and let people decide if they are worthwhile.”

“People want to know where the money is going, not to replace money already being spent on projects to raise wages, or buy new pickups and such,” he added. “I am not sure if a general tax increase of 1 percent would make it.”

Purchase of new farm equipment that is used exclusively in farm production and the purchase of fertilizer and its application are exempt from the sales tax by Wyoming law.

However, both legislators noted that chemicals for weed and insect control and their application are subject to the sales tax.

“The cost of pesticides and application can add up quick,” Laursen said. “The cost of chemicals and application can range from $50 to $100 an acre. If we take a small farmer around 500 acres, that would add $500 to his taxes, and if you take a large farmer with 5,000 acres, that is $5,000 for his operation.”

Parts and service on farm equipment are also subject to sales tax. If a farmer pays $50,000 a year for parts and service, that would add an additional $500 in tax, Laursen said.

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