Holly Sales Tax Increase on November Ballot

The November 6 general election is less than 90 days away.  Along with a potential new President or Prowers County Commissioners, Holly voters will be asked to decide on a sale tax increase. 

 According to Holly Mayor, Brad Simon, “The Board of Trustees has given notice to the county clerk to conduct a coordinated November election with the county.  A ballot question will be posed to the electorate of the Town of Holly to add a 2% sales tax to the existing 1% sales tax, to total 3%.  The purpose of the increase would be to strengthen the town’s general fund.  The general fund pays for public works and all operation of the town.  Sales taxes, property taxes, franchise taxes, and charges for services finance some of these activities.  However, Holly’s 2011 audited financial statements reflect a transfer of $123,822 from the utility fund to the general fund as an adjunct revenue stream to the general fund.  The transfer is allowed for in the budget and occurs annually.” 

In lieu of depleting the funds needed for capital improvements in the utility departments, the additional sales tax will protect the financial stability of the utility fund while allowing a replenishing of reserves.  An approval by a vote of the people to add 2% to the current sales tax would bring the total sales tax revenue to an estimated $168-170,000 annually compared to $55,636 in 2011.  The board anticipates that a large portion of the increase in revenue would come from purchasers and shoppers from outside the town limits who are currently spending money in Holly routinely or are traveling through town on Highway 50.   The current total state, county, and town sales tax rate in Holly is 4.9%.


Filed Under: BusinesscommunityEconomyEnergyFeaturedHollyNoticePoliticsUtilities


About the Author:

RSSComments (0)

Trackback URL

Comments are closed.