HUTCHINSON, Kan. — Reno County and the city of Hutchinson have enjoyed a year-long boost in sales tax revenue. Prices inching up and robust local shopping from residents has kept the sales tax numbers ahead of the number from 2019 and again in 2020.
It’s also providing another benefit, that’s the Sports Arena sales tax. The .35% sales tax was approved by voters in 2015 to fund the $29 million renovation project. The tax was expected to generate about $300,000 per year.
City Manager Jeff Cantrell says the added revenue could push the sunset of the sales tax up by as much as a year. It could provide a small windfall for the city, much as it did for Reno County when the sales tax for the correctional facility was eliminated three years earlier than scheduled. The sunset of that sales tax lowered the city sales tax rate to 8.6%, which equals the 6th-lowest rate of the 28 largest cities in Kansas. Sunsetting the tax would lower the city’s rate to 8.25%.
If the sales tax revenue keeps pace, the sales tax could go off the books in 2024.
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