- Myth vs. Fact
Myth vs. Fact
Separate myth from fact with some helpful explanations below:
- MYTH: The Special Purpose Sales and Use Tax will probably just be used to increase salaries and hire more people.
- FACT: The tax can only be used to construct, acquire or improve certain capital items as allowed by state law. It cannot be used to pay operational costs, including salaries and benefits.
- MYTH: They will probably use the money to build or improve whatever they want, not what they need.
- FACT: By state law, funds can only be used for items on the ballot, as approved by the voters.
- MYTH: We will probably never know where the money really goes.
- FACT: All entities that receive funds must separate these dollars from all other governmental funds. Additionally, they are required to publish an annual report as to their use.
- MYTH: The implementation of the tax will hurt our local economy by making goods cost more.
- FACT: While the tax will add one penny to goods purchased at the retail level, the cost will be spread among both citizens and visitors, which means visitors will help pay for community infrastructure. In return, governments will not have to allocate property taxes for these purposes, thereby reducing operational costs for businesses.
- MYTH: They will probably still raise taxes.
- FACT: While the Special Purpose Sales and Use Tax cannot be touted as a property tax reducer, it certainly can be used as a property tax deferment. Since all of the capital improvements identified are essential to the community, they must be provided through some funding method. The penny tax insures that property taxes do not have to be used for those purposes.