Treasurer explains compensating sales tax
Staff reporter
Marion County Commission requested and received information Monday from county treasurer Jeannine Bateman regarding compensating sales tax.
The county, and other taxing entities, receive two types of sales tax — retail and compensating.
Retail sales tax is for those items purchased and received within the county. Compensating sales tax is for those purchases made outside the county but the items purchased are used within the county.
Examples Bateman gave were vehicles, Internet and catalog sales.
If a Marion County resident purchases a vehicle in Wichita, the resident will pay the compensating sales tax rate for Marion County because that's where the resident will purchase a tag. If a resident purchases a vehicle that has a higher sales tax than Marion County, the resident will pay the higher amount to that county.
Other items and services purchased outside the county and then used within the county do not work that way. For instance, if a Marion County resident purchases items through a catalog and the items will be used in Marion County, the resident will pay the Marion County sales tax rate regardless where the items were purchased.
During the past few years, an increase of sales tax revenue has been noted. Bateman said that is attributed to the new compensation tax which was implemented several years ago.
Commission chairman Dan Holub said Marion County residents will not go out of county to make purchases like vehicles because it won't make any difference — they still have to pay the county.
"I don't want voters to get side-tracked with the real issue here," said Holub, referring to the county considering a sales tax increase of up to 1.5 percent for a new law enforcement facility.
"I don't want any arguments over the sales tax which isn't the issue," Holub continued. He sees the project of a new jail and court services center as a need more than an opportunity.
"This is not an opportunity," Holub said, "but something we have to take care of."
The county's jail currently is out of compliance and at some point the state will determine what will happen to the operation.
"We can pay now or pay later," Holub said. He said he considers this to be a fair tax for everybody to pay.
Commission Randy Dallke said the commission would try to accomplish the project as economically as possible.
In other business:
— Virgil Penner, Newton resident and member of Northview Development Services, told the commission that despite issues with Kansas Department of Social and Rehabilitative Services (SRS), the facility will continue to operate and become stronger.
Penner said SRS had threatened to not renew the facility's license if leadership did not change. The executive director and assistant executive director of NDS were terminated, said Penner, and an interim CEO currently is serving the facility.
Since that time, SRS has "backed off" and NDS is striving to become a better institution.
"We want to become one of the best institutions in the state," Penner said.
The facility serves 128 people in the Harvey and Marion county areas.
The commission was assured that progress will continue to be made and the county's annual contributions will continue to serve county residents.
Penner also reported the facility had reached its goal of raising funds for expansion and new facilities.
— The commission canvassed the Marion City Council election. One provisional ballot was opened and noted. The voter had registered within the required time frame but the information was not entered on the county's computer until after voter registration closed.
The ballot did not change the ultimate outcome of the election with the top vote-getters advancing to the April 4 general election.
— A voucher and check were signed by the commission for $32,584 to ACT for mold removal from the courthouse. Estimates were $35,584.
— A letter from McPherson resident Steve Schmidt was noted regarding his disapproval of the county allowing smaller acreage for development. Schmidt owns property in Marion County.
— The commission approved the annual, budgeted allotment of $500 to Flint Hills Resource, Conservation and Development district.
— Steps will be taken to make more safe the west outdoor steps to the courthouse. County clerk Carol Maggard said numerous people have tripped and fallen up the steps because one step is shorter and shallower than others.
— The commission approved and signed a state grant application by Diedre Serene, county health administrator, for four grants that totaled more than $25,000.
— Serene also reported a training session being planned regarding preparation for a pandemic flu outbreak.
— The commission approved the purchase of two furnace units for $4,875, for the county annex building from KBK.
The next commission meeting will be at 9 a.m. Monday in the courthouse.
