Wichita voters might be surprised to learn that they passed a city sales tax, according to city documents.
In 2014 the Wichita City Council allowed voters to decide on a temporary one cent per dollar Wichita city sales tax. That would have taken the sales tax in the city from 7.5 percent to 8.5 percent. The matter failed to pass, with 62 percent of voters against the tax.
But wait. According to the agenda packet for the council’s meeting on March 5, 2019, a one-cent city sales tax has been approved at an election.
In the agenda for that day, as part of item V-3, titled “Private Development Agreement with Wichita Riverfront LP (District IV),” there is a development agreement between the city and a group wanting to develop city-owned land near the new baseball stadium. Section 6.03 of the development agreement holds this surprise:
“The 1% City sales tax has been approved at an election, and the City agrees that the City sales tax revenues generated within the STAR Bond District will be committed to pay the principal and interest of the STAR Bonds.” (emphasis added)
This error — if it is an error — is much more than a simple typographical error or misspelled word. I’ve asked the city for an explanation of what this means.
Something like this must be more than a random mistake. We need to know: How did this statement make its way into an official city document, specifically an agreement between the city and a business partner?
Are city officials planning another sales tax election? Not only planning an election but banking on the passage of the tax?
Is the business partner relying on a new Wichita city sales tax? Did the city promise this?
Is this something else we haven’t been told, like a secret deal to sell city-owned land for $1 per acre?
Is this someone’s idea of a joke?
No matter what explanation the city may provide, it’s difficult to fathom how language like this appears in an official city document unless someone is thinking about this — and wishes for new taxes.
I’ll let you know if I get a response from Scot Rigby, who is Assistant City Manager, Director of Development Services for the City of Wichita.
Update: It was a mistake, the city says. See Update: Wichita city sales tax not passed.