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4/19/2013 1:41:00 PM
Sales tax rate, other changes approved by Kingman City Council

Doug McMurdo
Miner Staff Reporter

KINGMAN - The City Council on Friday voted unanimously to bump the city's sales tax by half a cent, cut the bar and restaurant tax by 1 percent and lower the base water rate by $2 a month.

The changes take effect July 1 - the same day a state-mandated one-cent sales tax expires, meaning shoppers will actually pay a half-cent less than they do today.

The sales tax rate will go from 8.85 percent to 8.35 percent.

The sales tax rate in Bullhead City and Lake Havasu will drop to 7.85 on July 1. Bullhead City residents also pay into a fire district and Lake Havasu residents pay a property tax that helps fund police and fire protection.

The increase and decreases are projected to net the city about $1 million a year, funding that will be used to shore up a general fund account that has shriveled dramatically since the Great Recession began in earnest in 2007.

Sales taxes, formally known as a transaction privilege tax, in Kingman are the sole source of funding for city operations, including police and fire protection. Currently, about $10 million is collected annually in sales tax, but police and fire protection alone cost taxpayers about $12 million a year.

Finance Director Coral Loyd said the shortfall would be made up by revenue the state shares with cities.

The sales tax hike will sunset on June 30, 2016.

Until then, voters will be asked to do one of two things: Approve a property tax to fund public safety or form a fire district.

According to city staff, the owner of a $100,000 home would pay about $280 more a year in property taxes if voters ultimately approve the measure. The owner of a business valued at about $1 million would pay roughly $3,500.

Members of the Chamber of Commerce present at the meeting did not object to the sales tax hike or the proposed push to levy a property tax, which would require a successful petition drive in order to be placed on the 2014 election ballot.

ICT - Kingman Honda
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• It's unanimous: Kingman Council hikes sales tax

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Reader Comments

Posted: Monday, April 22, 2013
Article comment by: John Schneider

It is too funny when it does come toelect someone new, the voters don't remember times like this...I said it before...we all need to do our homework when it comes to voting...and that includes keeping a spreadsheet on your computer when these things happen in Kingman...

Posted: Monday, April 22, 2013
Article comment by: Nothing cut a Shell game!

The only reason they gave back 1% of the bar & restaurant is that it was to be used for capital improvements only! And staff wants the $$$ in the general fund so they can spend it on what ever they want! ( new vehicles, raises for employees, trips for this council members)
They just pulled a fast one on us.

Posted: Sunday, April 21, 2013
Article comment by: Richard Koch

Passing a property tax is akin to opening your wallet or purse and just letting our so call elected officials dip their hands in and take whatever they want when they want. I have to live within my budget, why can't they???

Posted: Saturday, April 20, 2013
Article comment by: who cares what my name is

In 1980 we lost the property tax in favor of sales tax. That is why we don't have a City property tax. If you own property in the City, regardless, of what it is or used for, and the property tax is voted in. You will pay that tax on top of the county tax you already pay. Every Year. Do you want to be the sole providers of the fire districts funding when you are not the only demographic using the services? If costs go up, you know that so will the tax for a fire district property tax. Have you priced a fire truck lately?
Some of ours are very old and in need of replacement soon.

Posted: Saturday, April 20, 2013
Article comment by: someone in arizona

How about cutting some of the fire and police spending. I am not talking furloughs for officers and firefighters. Wait on buying new trucks and cruisers. If our old vehicles are in good enough shape to stay within the city for other uses then they are good enough to be kept as their original designation. There are a lot of other areas that could help the issue. Police and Fire seem to be untouchable as far as the spending they are allowed. I am not making the case for cutting the essentials or level of service but I think some more thought out decisions on spending could be made.

Posted: Saturday, April 20, 2013
Article comment by: Mugged From Behind - Now Shot In The Face

By whose values is that $100,000 home being used to increase the property taxes? Is it the market value? Is it the Assessor's full cash value or limited value? or by what other value? It's a big jump in annual property taxes, by whosever value you use.

Posted: Saturday, April 20, 2013
Article comment by: $280 more per year .....

Obama's new "chained CPI" Social Security provision will mean average annual increases (depending, of course, upon your exact allotment) of about $150 or less (and from what I have read, this amount will deteriorate over the years, while taxes and inflation roar ahead!). Polish sausage which sold two years ago 16 oz. for $2.49 now are 12oz. to 14 oz. for up to $4.99. I mention one item for simplicity's sake, but the same holds true for many products. We are being eaten alive by taxes and inflation. Just where do you think, from the above figures, that $150 differential between Chained CPI and Kingman's new taxes is going to come from? I'll tell you where - from Humberto's, Superior Tire, WalMart, the dentist, Carl's Jr., and every other retail outlet and other business in town. People will lower their auto insurance coverage, postpone medical/dental work, eat less nutritious food (with its consequences), etc. Go ahead and argue the 'absolute need' to raise taxes all you want, but what I have written here will prove true.

Posted: Saturday, April 20, 2013
Article comment by: Patriot WES

The brilliant Mayor Salem and city council came up with some great new ideas on how to balance their budget. Raise Taxes! REALLY????? I will go out of my way to purchase any big ticket item elsewhere.

Posted: Friday, April 19, 2013
Article comment by: No Fire District

I applaud the city council for putting on their big boy/girl pants and making a decision. The Chamber of Commerce should be ashamed of themselves for the actions that they took against the council I will be canceling my membership immediately. The idea if either a fire district or a fire tax is a good one, but please, please do your homework prior to starting a fire district, we have all seen the craziness that fire districts breed. The idea of a fire tax is by far better, same people, just paid through a property tax.

Posted: Friday, April 19, 2013
Article comment by: Web Dawg

If my taxes go up another $400 a year I better see Blake Ranch Road maintained This is BS.

Posted: Friday, April 19, 2013
Article comment by: justanobody sr

its obvious we need other people in office to make decisions for Kingman .
and increase of $280 in property tax would be unreasonable to most people, and cause hardship, but these elected people don't see that!
we (the people) have to live within our budgets, WHY DON'T YOU ( the city)

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