By Sam Jack
Haysville is not raising taxes, but it will collect more of the tax money city residents are already paying, after attorneys for the city of Derby resolved a dispute with the Kansas Department of Revenue (KDOR) last week.
Derby, like Haysville, has a voter-approved municipal sales and compensating use tax. Derby’s tax is 0.5 percent, while Haysville’s is 1 percent. The compensating use tax is applied to local residents’ purchases of automobiles elsewhere in Sedgwick County.
Instead of giving Derby its full 0.5 percent on car purchases, KDOR was splitting the revenue between Derby and Sedgwick County, Derby found.
That meant that the additional taxation voters had approved for municipal use was being redirected outside the city.
Editor’s note: This story first appeared in the Nov. 22 print edition of the Haysville Sun-Times. For the most complete coverage of City of Haysville news, subscribe to the Sun-Times. Call 316-540-0500 to get home delivery of next week’s paper.
Haysville and Goddard realized that the same issue affected them and joined Derby’s lawsuit against KDOR. Finally, after more than two years in court, the state agreed to give all the revenue in question to Derby.
Haysville chief administrative officer Will Black said that though Haysville is not a party to the settlement agreement, KDOR is expected to make changes to its computer system that will include Haysville and apply statewide.
“It’s good that they corrected it so that the money goes where it should go, based on the vote of the taxpayers,” Black said.
Derby city manager Kathy Sexton said in a statement that Derby had only asked to be treated fairly.
“More than just a financial matter, this is about Kansans being able to trust their state officials to follow the law as written and as intended by the Kansas Legislature years ago,” she said. “If this case also paves the way for other cities to receive their fair shares, then I commend the Kansas Department of Revenue for fixing their processes for other affected cities across the state.”
Goddard city administrator Brian Silcott said he is pleased that the issue is now settled.
“We can safely say that this agreement will mean that more sales tax is coming to the city (of Goddard) that was previously going to Wichita and Sedgwick County – which means that we’ll be able to directly reinvest those funds into our community,” he said.
Neither Silcott nor Black could estimate how much additional revenue their cities will see after the change takes effect next month.