Manhattan city commissioners have been recently discussing bringing a sales tax question that would take the city’s current 1% sales tax to as much as 2% to help replenish the General Fund cash balance on the August ballot.
The balance dropped $6 million between January 2023 and January 2024.
Mayor Wynn Butler told KMAN that while all three solutions are certainly not ideal, they’re the only ways they can replenish the fund.
“They’re three ways (to replenish the general fund), said Butler. “Option one is to increase the sales tax which the only thing the commission can do is put that on the ballot for a vote. Option two is to increase the mill levy and option three is to cut services.”
The sales tax question would require a vote from Manhattan voters during the Aug. 6 primary election. If approved, the city could potentially bring another sales tax question to voters in November, asking for an extension of the quality of life sales tax to help fund a potential new indoor aquatics center. That tax is scheduled to sunset in 2027.
