Fire/Police Renovation/Expansion

Another question I receive about the Fire/Police renovation/expansion is:

Why is sales tax preferred instead of property tax?

There are several issues the city council considered when deciding to finance the project with a sales tax. They are:

· Indianola Fire/EMS Department provides service for about 118 square miles of county property, yet, Indianola only occupies about 9 square miles
· Sales tax is paid by those who shop in Indianola compared to property tax that is only paid by Indianola property taxpayers
· The sales tax will generate more revenue annually than a property tax—about $820,000 compared to $592,000 (using a $1.40 tax rate increase)
· The sales tax will be in place for only 10 years versus property tax for 15 years
· Sales tax is not paid on food, medical supplies, vehicles, gasoline and farm equipment
· Sales tax cost per family is about $60annually (based on $500/month taxable purchases) compared to $125 annually (based on $200,000 home)
· Once approved by referendum, sales tax revenue cannot be spent on any other projects unless another vote passes
· The sales tax will provide enough revenue to contribute $50,000 annually for property tax relief--$50,000 would result in a 12-cent tax rate reduction for Indianola property taxpayers
· Sales tax requires a 51% approval versus 61% for property tax

It was with much thought and consideration that our elected officials preferred the sales tax. Again, if you have any questions, please do not hesitate to contact me.

And, do not forget to vote on July 8 at the Warren County Administration Building, 301 North Buxton.