Quarter Cent Sales Tax

Background

The quarter cent sales tax was first approved by Hutchinson voters in 1993, and implemented in 1994. The sales tax has been renewed by voters several times, but the current sales tax is due to expire March 30, 2019. Once again during the November 7, 2017 election, voters will have an opportunity to continue the commitment to the quarter cent sales tax for an additional five years.

Since 1994 the money has been used to support street improvements, build ADA ramps, reduce property taxes, and help support the Cosmosphere. In 2009, Strataca also began receiving support from this sales tax.

The sales tax has generated nearly $42 million since its inception. The projected $11 million generated over five years from the renewal of the sales tax will be distributed as follows:

47% - Street Improvements

15% - Property Tax Reduction

33% - Cosmosphere

5% - Strataca

Impact to City Budget and Residential Property Taxes

The sales tax generates revenue for the City to use in street improvements and property tax reduction. If passed, approximately $337,000 will be applied each year toward property tax reductions which represent an estimated 1.0 mill in property tax revenue. If the tax is not continued, the City Council will have to make budget cuts mid-year to offset the loss of $337,000 in income. If cuts are not feasible in the budget, the alternative would be a future mill levy increase to offset the loss.

Funding of Street Improvements

The City has spent approximately $20.5 million of the sales tax funds on street improvements that involve slurry seals (a preventive street sealing technique) and arterial/collector street overlays and residential overlays. If the sales tax is continued by voters this November, residents will continue to see improvements to the city's arterial and collector streets.

Over the last five years, the quarter cent sales tax revenue helped to fund the following projects: (Note: the General Fund, Bonds, and the Federal Fund Exchange also contributed to many of these projects as well, but without the approximately $1 million from the quarter cent sales tax, many of these projects would not have been possible.)

2012:

   o Plum (4th to 11th)

   o Right Turn Lane into Mall

2013:  Waldron (17th to 23rd)

•2014:  Waldron (23rd to 30th)

•2015:  

   o 2015 Arterial Street Mill and Overlay Program:

       30th (Main to Waldron)

       Severance (11th to 17th)

   o 2015 Chip Seal:  Various locations throughout City (see map)

•2016:

   o 2016 Arterial Street Mill and Overlay Program:

       Plum (23rd to 30th)

       17th (Severance to Waldron)

       Plum (Ave D to 4th)

       4th (Walnut to Plum)

       Poplar (Ave A to 4th)

       Nickerson Blvd (City limits to Grant)

   o 2016 Chip Seal:  Various locations throughout City (see map)

•2017:

   o 2017 Arterial Street Mill and Overlay Program:

       Avenue A (Main to Adams)

       Adams (Avenue A to 11th)

       5th (Adams to Brookside)

       Monroe (2nd to 5th)

       Monroe (11th to 17th)

       Monroe (30th to 43rd)

       30th (Monroe to Van Buren)

       Severance (17th to 23rd)

       17th (Adams to Van Buren)

       Plum (30th to Cherokee and Roberts to 43rd)

       43rd (Plum to the East side of Plum Creek Elementary)

   o 2017 Chip Seal:  Various locations throughout City (see map)

•2018:

   o 2018 Arterial Street Mill and Overlay Program:

       Airport Road (4th to 17th)

       Halstead (11th to 17th)

       4th (K-61 to Halstead)

       Severance (Avenue A to 11th)

       11th (Severance to K-61)

       23rd (Waldron to Halstead)

   o 2018 Chip Seal:  Various locations throughout City (see map)

Questions?   salestaxinfo@hutchgov.com




COSMOSPHERE

On an annual basis, the economic benefit of the Cosmosphere to Hutchinson is estimated to be $13,400,000. That comes in the form of dollars spent by tourists (Cosmosphere attracts 100,000 visitors a year and 86 percent of them come from outside of Hutchinson), payroll to 30 employees, and more that 1.5 million dollars spent with local vendors. The Quarter Cent Sales Tax is 16% of the Cosmosphere budget. The Cosmosphere museum is free to anyone who lives in Reno County and Reno County School districts pay reduced fees for educational experiences at the Cosmosphere.

STRATACA

Strataca attracts 50,000 visitors annually with 94% of our guests traveling from outside of Hutchinson. This one of a kind tourist attraction is estimated to have a $4,700,000 annual economic impact on our community. The Quarter Cent Sales Tax is 15.6% of the Strataca budget. Strataca currently employs 38 local staff members and has contributed over 1 million dollars annually in local spending. In addition, last year approximately 8,000 students participated in our Salt Academy program and as always, we are pleased to offer all Reno County residents a 25% discount on an admission ticket.

Contact Us

  1. John Deardoff

    John Deardoff


    City Manager
    Email

    City Manager's Office


    125 E Avenue B
    Hutchinson, KS 67501
    Map

    Phone: 620-694-2611
    Fax: 620-694-2673

    Hours


    Monday - Friday
    8 a.m. - 5 p.m.

    Staff Directory

Link to Cosmosphere

Link to Cosmosphere website

Link to Strataca

Link to Strataca