In 1789, Ben Franklin wrote “Our new Constitution is now established, everything seems to promise it will be durable; but, in this world, nothing is certain except death and taxes,”
For the Federal, State or Local level, tax dollars are needed to operate government and the services that are provide. We all pay Income taxes at the Federal and State level. In addition, the Kansas government collects a 6.5% sales tax and at the present time, there is a 1.5 mill levy on property taxes for 2 State funds. School districts have a 20-mill state-wide levy that is the same as every district in Kansas but may also have local a levy for supplemental general, capital district outlay, and bond & interest as our local district does. The tax funding is only from property taxes that are levied. School districts do not have the ability to levy sales taxes, but there are some places in the State where a City levied sales taxes for a school building project to shift the burden from property taxes.
Geary County levies property taxes and a .25 percent sale tax for the bonds issued at one time for the hospital. In addition, the County has a 1% general sales tax. In the case of a County general sales tax the receipts are split by a State formula between the County and the incorporated cities on a basis of population and property taxes levied. In the case of Geary County, the 3 cities get more of the population side, but the County gets more on the tax side than the 3 cities combined. The City of Junction City receives property tax dollars and then
the 1% general sales tax and the 1% sales for debt service. The latter expires on or before December 31, 2030. That sales tax was approved by the voters twice to address the large amount of indebtedness the City had accrued.
Those who have property taxes in the City of Junction City pay property taxes to the County, School District, and of course the City. In the case of Geary County over 70% of the property tax receives are from property owners the City. Yet those outside of Junction City do not pay City taxes. This may sound quite simple but is important as any County expenditure needs dollars created by property in all of the 3 cities to pay a large portion of County expenditures. Simply that is the way it just is. In some cases, their however are expenses that those who pay County property taxes are asked to pay again as a City taxpayer. Yet the property owners in the other 2 cities in the County do not pay any extra taxes for.
I once heard it said, “The best tax is the one I don’t pay, but others do.” Each year the Kansas Legislature considers requests for exemption of paying property tax. While there always is great reasons behind the requests, we must remember that when someone does not pay taxes, the burden is spread to others.
At one time, Cities and Counties in Kansas received funds from the State that we call “Demand Transfers.” These funds were created by the State and often were a “deal” that was made between the State and the local units at one time. In the early 2000’s these funds were needed by the State and the transfers ended. It is estimated that since 2001 at least nearly $3.7 billion has not been transferred from the State. In turn this has put pressure on property taxes. Even those there is always discussion about these transfers being again made to Cities and Counties, many feel that will never happen. Last year when there was a push to eliminate the locals food sales tax, a State Legislative leader proposed State dollars to offset the reduction of revenue to local governments. Naturally, many were very sceptic of that not only happening, but as well as continuing in the future.
Yes we can always say that taxes should be cut, but to do so less has to be spent. I agree spending has to be monitored, but the demands for funds never seem to end. Many want the City
to spend more on street repairs, but at the same time there is a demand for something else such as park improvements. Bottomline, all of the needs for funds are justified, but a balance has to be found. Yes, I know you have heard it before, but in the case of our City we still have to stay “laser” focused on reducing what was the once massive amount of General Obligation debt. Unless there is a “big surprise”, the biggest portion of the debt load will be gone in about 5 years.
Yes, Benjiman was correct that taxes are certain. That will never change. The struggle of course is to keep balance in both taxes and how those dollars are spent.