Not all businesses collecting new tax
Published on -4/16/2009, 12:35 PM
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By KALEY LYON
When a new half-cent sales tax went into effect April 1, several local businesses apparently failed to begin proper collection.
If a business did not immediately begin taxation to benefit construction of a sports complex, it will have to pay the difference, Assistant City Manager Mark Loughry said.
"I don't think it's widespread, but we just want to remind people that that did take place April 1," Loughry said. "They do need to be collecting the new sales tax."
For most Hays businesses, the current tax rate is 7.55 percent. For the three businesses composing the transportation development district, sales taxes should total 8.3 percent.
These businesses, located north of Interstate 70, are IHOP, Hampton Inn and Home Depot.
It remains unclear how many businesses have failed to implement the new tax rate, Loughry said. Usually, it comes to city staff's attention only if an employee or a customer reports a problem, he said.
Some businesses report their sales taxes monthly, while others do on a quarterly basis. If tax reimbursement is needed, it will be paid at that time.
Ultimate authority for taxation enforcement belongs to the Kansas Department of Revenue. If a business continually fails to collect the current tax rate, it likely will be contacted by the state, Loughry said.
Tax-related questions can be directed to the Department Of Revenue at (785) 296-3909.
The tax was implemented this month after voters approved the half-cent sales tax in November. The retail sales tax is slated to sunset in four years.
In other news, the Hays City Commission will meet at 5:30 p.m. today for a work session. Agenda items include:
* Award of bid for pool grates at Hays Aquatic Park and Wilson Pool, in keeping with the Virginia Graeme Baker Pool and Spa Safety Act.
* Repair of a children's frog slide at the HAP.
* A resolution authorizing the sale of water and sewer system revenue bonds in the amount of $4 million.
* Proposals submitted for design services regarding water and sewer construction projects.
* Possible implementation of a Netmotion cellular data project, to be used in patrol vehicles.
* A grant application to receive possible funding for the Netmotion project from the American Recovery and Reinvestment Act of 2009.
* Results from a biannual bridge inspection.
* Bids for a new pavement breaker. The low bid was in the amount of about $89,400 from Logan Contractors Supply.
* Award of bid for a loader to benefit the parks department.
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