Frequently Asked Questions
Below you will find information that might help you understand how to find things or learn about information you might need to know about your city or town.
Paving the Future: Sales & Property Tax
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Paving the Future: Sales & Property Tax
An advantage to property tax is that lower income families who do not own property are not directly affected. Disadvantages to property tax are that only property owners pay the tax and no transference occurs meaning only McPherson residents pay the tax. Advantages to sales tax are 30 percent or more of the tax is paid by non-residents and all citizens contribute to the tax. The disadvantage to sales tax is all citizens pay the tax including lower income families.
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Paving the Future: Sales & Property Tax
If the half-cent sales tax is not renewed or some other funding source is not identified, street projects such as preventative maintenance, street department forces and equipment would all be at risk. Streets will also deteriorate faster and services such as snow removal will be diminished.
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Paving the Future: Sales & Property Tax
The first half-cent sales tax is dedicated to street infrastructure. The second half-cent sales tax is project specific and is designated to fund the First Street reconstruction project, the community building renovation currently under design, hiking & biking trails and parks & recreation facilities.
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Paving the Future: Sales & Property Tax
It is estimated 30 percent or more sales tax collected in McPherson is collected from non-residents.
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Paving the Future: Sales & Property Tax
By State law a specific tax can only be in place for 10 years; thus, a new tax for another 10 years must be approved by public vote.
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Paving the Future: Sales & Property Tax
Each half-cent sales tax is in place for 10 years. The first tax, dedicated to street infrastructure, began on January 1, 2011, and will sunset on December 31, 2020. The second tax, dedicated to specific projects, began on October 1, 2013, and will sunset on September 30, 2022.
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Paving the Future: Sales & Property Tax
A small portion of property tax has always been designated for basic road improvements. However, prior to the implementation of the first half-cent sales tax there were not enough resources to cover large street projects. Only preventative maintenance was performed.
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Paving the Future: Sales & Property Tax
The current mill levy is $138.929 per $1,000 of assessed value.
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Paving the Future: Sales & Property Tax
Ad valorem or property tax currently funds six areas including State (1.5 mills); County (30.158 mills); State USD (20 mills); USD 418 (29.653 mills); City (51.570 mills) and McPherson Recreation Commission (6 mills).
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Paving the Future: Sales & Property Tax
Yes, currently $350,000 is transferred from the general fund and applied to the street department budget.
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Paving the Future: Sales & Property Tax
Transparency is operating with full disclosure to citizenry.
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Paving the Future: Sales & Property Tax
Street infrastructure was only funded by the general fund prior to 2010.
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Paving the Future: Sales & Property Tax
If the half-cent sales tax is renewed, a Cost Benefit Factor (CBF) will be used to prioritize street projects. The City Commission is also committed to addressing at least two projects from each City quadrant as identified by the public.