Posted: 10:47 AM Apr 26, 2012
Reporter: Mike McKnight

Local option sales tax is on the May Primary Election ballot for Weeping Water voters. The Cassgram reports The City of Weeping Water explains the reasons for putting the issue before voters.

Due to constant decreases and instability in the allocation of state and federal funds, a number of Nebraska municipalities have been seeking an alternative means of income sources, rather that placing the majority of the burden on property taxes.

After several months of research of other Nebraska communities that have adopted a local option sales and use tax and the benefits they have experienced by having made this decision, the City Council is proposing to increase the local sales and use tax for Weeping Water from one percent (1%) to one and one-half percent (1½%) in order to maintain the services residents expect, and yet plan and finance future improvements.

Since the 1% local sales and use tax was implemented in June of 2005, Weeping Water has generated $652,771.59 in sales tax revenue. From the revenue generated, funding for capital improvements was allocated as follows:

Pool Loan Improvements-$125,000; Fire Truck Payments-$140,000; Pedestrian Bridge at City Lakes-$20,000; Auditorium-$155,000; WW Trail Loan Payments-$75,000; Playground Equipment-$15,000; Limestone Sign & Pillars at Ballpark-$9,786.71; Motor Vehicle Tax Reimbursement (State Requirement)-$79,992.59; Gospel Run Improvement Loan payment-$20,000; Misc sup exp-$40.06. Total Capital Improvements funded-$639,819.36.

Currently 193 Nebraska communities impose local option sales and use tax. One city imposes a .5% sales and use tax rate; 108 cities impose a 1% sales and use tax rate; and 85 cities impose a 1.5% sales and use tax rate. Local communities included in these figures are Ashland, Eagle, Elmwood, Greenwood, Louisville, Plattsmouth, Syracuse and Springfield.

If adopted, the enforcement of the increase in the local sales and use tax would become effective approximately January 1, 2013. Based on sales and use tax receipts since implementation, the

additional amount of revenue that could be generated annually is approximately $50,000, which would provide a total approximate amount of $150,000 annually. The City Council feels that this option is the most feasible way to boost the city’s revenue, and maintain quality life in a small community without creating a property tax burden, says the city letter to citizens.

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