Archive for Thursday, October 30, 2003

Spending spike: sales tax numbers soar in city

Numbers boom with 102 percent increase

October 30, 2003

In the city's history, revenue created from sales tax has long been a paltry sum compared to that of other nearby cities.

And while those numbers are still somewhat pedestrian in comparison, there is improvement and reason for optimism.

According to the latest figures from the Kansas Department of Revenue, in September the city received $11,180 in sales tax, a 102 percent increase over the same period last year when the total was just $5,518.

The city's percentage increase is larger than any other city in the state, according to the information provided by the Department of Revenue.

For the 2004 fiscal year (July '03 to September '03), the city has seen a 38 percent increase in sales tax revenue, which amounts to $28,576 this year compared to $20,643 in 2003.

Basehor Chamber of Commerce president Debbie Bonee said a flurry of new businesses have opened, creating the boom in sales tax.

"In addition to Kelly's, which was probably the only restaurant in the city in September of '02, we now have Sonic, What's New, Simple Simon's and Doc and Brutie's," Bonee said.

Another new business producing sales tax revenue for Basehor is the restaurant and 18-hole public golf course inside the Falcon Lakes development on Kansas Highway 32.

Falcon Lakes features The Brassie Bar and Grille as well as The Brassie, a more formal restaurant. Business at the restaurants and golf course, which has seen a gradual increase in rounds played, add to the city's sales tax receipts.

"Since Falcon Lakes is in the city of Basehor, we benefit from sales tax on green fees, merchandise sales and food sales in the restaurants," Bonee added.

Sales tax figures are an important indicator in gauging economic growth; cities derive revenue from sales tax, meaning more funds pour into the coffers, leading to less burden on the taxpayer.

With the sheer number of proposals for commercial development or projects in some stage of construction, Basehor should see its sales tax numbers continue to flourish.

"The fire that destroyed over half of the Basehor Town Square shopping center (in 2001) hurt the city's sales tax revenue in 2002," Bonee said. "With the added businesses to the shopping center and the growth in Basehor right now, I think we will continue to see the sales tax numbers rise."

Other area cities noticed an increase in sales tax as well in September.

Bonner Springs saw a 50 percent increase, producing $171,411 in sales tax this year against $114,231 last year and Tonganoxie showed a 26 percent increase, $28,014 this year against $22,137 last year.

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