Should McCook be No. 59 with a 1 1/2-cent sales tax?
We have a test for those of you who consider yourselves "power shoppers":
Question Number One: without the aid of Google or any other outside source, state the city sales tax rate of the following cities: North Platte, Holdrege, Kearney, Grand Island, Lincoln, and Omaha. We've provided the answer at the end of this editorial, but our hunch is that most of you could not state those cities' sales tax rate with one hundred percent certainty.
Question Number Two: name two or three shopping centers, retail businesses, or restaurants you like to frequent when you visit each of the above-mentioned cities. Only you know the answer to that question, however we're betting that you had no problem coming up with an answer to question number two.
The object of taking this quiz is to point out that most shoppers do not strongly consider city sales tax rates when they choose their shopping destinations. Most shoppers are more interested in selection, price, service and convenience. They want to know that they will be able to get the merchandise they need at a fair price from someone they can trust without a lot of extra hassle.
In tonight's city council meeting, the council will appoint seven members of the community to serve on a sales tax ballot committee.
McCook's current 1 percent city sales tax will sunset on Sept. 30, 2008. The public will be voting on the continuation and possible increase of the city sales tax. The current city sales tax is earmarked ½ percent for property tax reduction and ½ percent for city improvement projects. The committee and the council will need to determine if they want to ask for an additional ½ percent for economic development.
It is probably too early in the planning process to know whether or not the sales tax plan is a good idea for McCook. We don't really know what the plan is yet. However, there are a few facts that we can not deny:
1. If a city sales tax is not approved, property taxes will increase and/or city services will be cut.
2. An increase in property tax and a cut in city services will result in an increase in rents and other business expenses for McCook merchants.
3. An increase in business expenses for McCook merchants will force merchants to increase their prices and thus become less competitive in the real market place.
4. If prices are too high, the customer will either look elsewhere or not buy at all.
If those facts sound familiar, it is because they are the exact points Dick Trail made in Saturday's opinion piece in favor of eliminating the city sales tax altogether.
Isn't it ironic how the same arguments can lead to two totally opposite conclusions?
There are more than 20 vacant retail buildings in McCook. If shoppers are most interested in a good price and a good selection, it seems that doing whatever we can to fill those vacant retail buildings and keep retail prices competitive will be in the best long-term interest of McCook.
The answer to Question Number One is that all of those cities have a 11?2 percent city sales tax. In fact, a total of 58 Nebraska cities have chosen to tax their citizens and visitors 11?2 percent for the privilege of shopping within their limits.
Should McCook become number 59?
We want to hear your opinion on both sides of the issue.
