Chestnut Street Project - Construction to Begin This Summer
Voters asked to consider 1/2 cent sales increase to offset property tax increase at May 15 election
On May 15, 2018 the City of Wahoo voters will have the opportunity to vote on a sales tax question - should the sales tax rate in Wahoo be increased by 1/2 cent? The purpose of the additional sales tax is to help pay for the Chestnut Street improvements. At the April 26, 2018 Council meeting the Council approved a contract with M.E. Collins Contracting to complete this work. Construction will begin mid-June.
The project, which is under contract and scheduled to begin mid-June, will be paid for by either just property taxes or if the sales tax passes it will be paid for with both sales and property taxes. It is estimated the sales tax generated from a 1/2 cent increase will cover 2/3 of the amount needed to make the bond payment for the Chestnut Street Improvements.
The impact of the anticipated revenue from the additional sales tax, if passed is shown below:
Impact of the ballot issue on Wahoo Property Tax Payers
Increase in property taxes
|
HOME VALUE |
if BALLOT ISSUE FAILS |
IF BALLOT ISSUE PASSES |
|
$75,000 |
$99 |
$33 |
|
$100,000 |
$132 |
$44 |
|
$150,000 |
$198 |
$66 |
|
$200,000 |
$264 |
$88 |
Property owners will experience a property tax increase. If the sales tax ballot issues passes, the sales tax will be used to offset the amount needed from property tax payers to make the annual bond payment for the project.
For information on the planning of the project and phases, please click HERE.
For more detailed information on the financing of the Chestnut Street Project, please click HERE
The additional 1/2 cent sales tax, if passed, could only be used for the Chestnut Street Project. This sales tax would sunset when the bonds were paid in full.