Sales tax on the books -- new 1 1/2-cent rate goes into effect July 1

Wednesday, January 23, 2008

The current one-cent city sales tax and the additional half-cent city sales tax that were approved in the special election Nov. 13 are now officially on the books.

The McCook City Council approved Monday night the third and final reading of city ordinances Monday night that reflect the new taxes.

The half-cent tax will begin July 1, if all requested items are received by the State Tax Commissioner in time. The one-cent tax will continue on Oct. 13. After 10 years, both taxes will terminate.

The one-cent tax is projected to generate $1.3 million in annual revenue to the city. One half of the proceeds will be used to maintain the city's reduced request for property tax, with the other half used toward improving, repairing or replacing capital infrastructure such as water quality improvements, streets, parks and other public facilities.

The half-cent tax is expected to bring in approximately $650,000 in revenue to the city. One half of those revenues, at $325,000. will be used for the expanding improvements of city-wide projects and the buy down of water and sewer debt. The remaining $325,000 will be used for an economic development program and plan.

The McCook City Council did not comment on either of the ordinances when approving them.

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