Local governments receive extra $1 million from old sales tax

Posted 4/23/20

The $13.68 million tax that Park County voters approved in 2016 turned out to be more like a $14.71 million tax.

The 1% specific purpose sales tax raised funds for numerous infrastructure …

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Local governments receive extra $1 million from old sales tax

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The $13.68 million tax that Park County voters approved in 2016 turned out to be more like a $14.71 million tax.

The 1% specific purpose sales tax raised funds for numerous infrastructure projects around the county — including widening and upgrading Absaroka Street in Powell, upgrading sewer lagoons in Cody and Meeteetse and improving the South Fork Road and replacing some bridges in the county.

When the extra tax took effect in March 2017, the thought was that the additional 1% would need to remain in place for approximately 2 1/2 years. However, officials were able to bring it to an end after just two years, as the full $13.68 million — and then some — had been collected by March 2019. Because it can take a long time for vendors to process their sales tax collections and turn them over to the state, money has still been trickling in from Park County’s tax. That included a $1,000 check that just arrived at the Park County Treasurer’s Office on April 7.

As of last month, a total of $14.71 million had been collected, representing a roughly $1.03 million “overage,” according to figures Treasurer Barb Poley presented at the county commission’s April 7 meeting.

Each specific purpose tax that voters approve winds up collecting some extra money, because shutting off the tax is an imprecise science. Counties can only change their tax rates at the start of a new quarter, in part to ensure that vendors have plenty of advance notice of the change in the sales tax rate.

The overage is being split up with the same percentage used for the original funding. Based off March’s figures, the City of Cody will receive an extra $378,248.21, Powell $322,288.20, Park County $184,460.77 and Meeteetse $151,299.29.

Poley said that the money must be spent on the projects approved by voters.

For instance, the county plans to spend its share on a Lower South Fork Bridge that proved more expensive than expected, plus some additional costs on the South Fork Road. Commission Chairman Joe Tilden noted that the ballot language approved by voters “was very specific on where this money was going.”

If Park County officials seek another specific purpose tax in the future, Poley said they could include language specifying that any overage would be put in the governments’ general funds.

Government leaders around the county have discussed the possibility of seeking a 1% general purpose tax from voters this year — one that could be spent on any government need — but no decisions have been made.

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