A 1 cent sales tax increase in Park County was turned down by local voters in 2012, but local government leaders say the need continues, so a survey will be sent out on March 10 to see if the public opinion has changed.

The proposed projects remain the same, but the collective cost has increased from $6 million in 2012 to $7 million in 2016.

“This is to get a feel for what people think,” said Powell Mayor Don Hillman. “I am in favor of it because I look at it as an investment in Powell — proud of our community and how it looks and we have got good infrastructure. But there are areas that need replaced and we need to keep up with it.”

The survey will ask local voters the following:

• What are your concerns, if any, regarding a 1 cent general purpose sales and use tax?

• In your opinion, are there projects that should — or should not — be funded with this type of tax?

• Would you prefer to see a 1 percent specific purpose tax on the ballot to address infrastructure needs rather than a 1 percent general purpose tax?

If approved, the 1 cent sales tax increase would generate about $7 million and Powell would receive $1.5 million of it. The rest would go to Cody, Meeteetse and the county.

About a third of the revenue generated from the tax would not come from local residents, as Park County benefits from tourists both inside and outside of Yellowstone National Park.

“The last time it was voted down, people said they did not know what the money will be used for,” Hillman said. “We are bringing it back because we need the money.”

The city has to be careful not to add onto operational costs, Hillman said. The projects from the tax would have to be specific with a clear start and finish since those funds may not be there when the tax goes up for voter approval again in four years.

The survey has two parts; one is information about the tax (provided in the sidebar below) and a survey with options for the proposed projects to gather thoughts from residents and businesses, said Powell City Administrator Zane Logan. The survey will contain an envelope to mail it back without having to pay postage.

The results will be tallied by a third party with prior experience across the state in gathering public opinions. Based on the results, the cities and county will know what would need to be done to improve public opinion, if necessary, if voters are strongly in favor of it, or if the tax is unlikely to pass.

“From Powell’s point of view, we are either going to do these projects or we are not,” Logan said. “If people do not want it, we will live within our means.”

The projects on Powell’s to do list are’t likely to be funded by the city’s general fund alone due to the downturn in the economy across Wyoming, Logan said.

“I know without infrastructure you don’t have anything,” Hillman said. “You can work on economic development, but without the infrastructure to support it, you are wasting your time.”

Project wish list

“We have infrastructure projects and that is all the money will be used for both for the county, Cody, Powell and Meeteetse,” Hillman said. 

Park County, Powell, Cody and Meeteetse all have possible projects that the tax would be used for, if voters approve it. They are as follows:

Park County

• Major roadway repair, replacement and reconstruction.

• Repair and reconstruction of bridges in greatest need of improvements.

Powell

• Improvements along Absaroka Street from Third to Seventh streets, including rebuilding the water line; street widening; storm drains; curb, gutter and sidewalks; trees and ADA projects.

• Storm drainage improvements along Division Street from Avenue E to Seventh Street, including ADA ramps at corners.

• Overlay and improvements to Grand Street.

• Widening Avenues A, B, C and D.

• Repaving Seventh Street from Bernard to Division.

If the city stopped slurry sealing streets, it would mean more repavement projects in the future, Hillman said. Or, if electrical pole testing was no longer conducted, the city would have to replace hundreds at a time instead of just a few.

“The citizens own them and they entrust us to make sure it maintain in a correct way,” Hillman said.

Cody

• Reconstruction of Beacon Hill Road and a section of Sheridan Avenue, as well as curb, gutter and sidewalk improvements along 29th Street and Central Avenue.

• Upgrade the wastewater lagoon system.

• Construction of a water storage tank off of Beacon Hill to improve fire protection as well as water storage and water system improvements.

• Completion of ADA ramp projects city-wide.

• Storm drainage improvements on Stampede Avenue.

• McMillin irrigation project.

Meeteetse

• Replacement of a 65-year-old water distribution line, improvements to water treatment plant and tank and upgrades to fire hydrants.

• Rehabilitation of pump station and storm drain.

• Street chip sealing.

1. Wyoming has a general 4 percent sales tax that applies to all 23 counties.

2. Local governments keep 30 percent of the revenue generated from the 4 percent sales and use tax, and the state keeps the remaining 70 percent.

3. The existing 4 percent sales and use tax funds make up about 17 percent of Park County’s general fund, 37 percent of Cody’s general fund, 30 percent of Powell’s general fund and 23 percent of Meeteetse’s general fund.

4. Twenty one of Wyoming’s 23 counties have voted in favor of having a general purpose sales and use tax — aka a “Fifth cent” tax.

5. The tax would cost the average household about $80 per year based on a formula provided by the State of Wyoming Office of Economic Analysis from a report titled “Tax Rates and Tax Burdens” in November 2014. This is based on the local average household income in the county, $50,000.

6. On a $100 purchase, the tax would be $1. A $10 purchase would bring in 10 cents.

7. Local governments get to keep 99 percent of a voter-approved fifth cent tax.

8. Revenues are distributed based on population. For Park County it would be distributed as follows — 43 percent to the county, 34 percent to Cody, 22 percent to Powell and 1 percent to Meeteetse.

9. The tax would generate about $7 million total, almost the same amount generated from the current 4 percent tax rate. That means Park County would get $3 million and $2.4 million would go to Cody, $1.5 million to Powell and $100,000 to Meeteetse.

10. There are 49 exemptions from the fifth cent tax, according to State Statute 39-15-105. This includes real estate purchases, food, fertilizer and farm equipment.

11. Travelers from outside of Park County would generate 30 percent of the revenue from the tax, according to the Wyoming Department of Tourism.

12. Property taxes provide a small percentage of the general fund revenues. In Powell and Cody it is 6.5 percent of the general fund’s revenue. In Meeteetse, it is 2.8 percent.

13. The tax would have to be voted on and approved every four years for it to continue.

14. Revenue would include sales tax generated inside Yellowstone National Park.