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Springfield: City Looking at Sales Tax Increase
Pay attention to how much sales tax you're paying a the register in the capital city, because there's talk that shoppers may soon have to fork out more. Mayor Mike Houston is admitting that the city can't afford to pay crumbling streets, sidewalks, and sewers. In the next three years, $87 million is needed for repairs. The city is looking to the taxpayer.
The city is not placing a bet on how much video gaming will produce in revenue for the capital city, but so far the luck has been good. In the month of December almost $3 million in bets were made at six locations in Springfield.
The city gets 5 percent of the net loss of bets placed, collecting $10,600 in December and $5,300 in November. Streets and sidewalks will benefit from the money.
"We're just going to have continue to get the machines operational, see what the monthly revenues are," Springfield Budget Director Bill McCarty said. "We'll be able to come up with a projection months down the road."
What is known is that another source of revenue is needed to fix $87 million of infrastructure repairs in the next three years.
"I think that we're ultimately going to have to do is look at some sort of sales tax," Mayor Mike Houston said.
Sales tax in Springfield is currently at 8 percent and if it were raised a quarter of a percent, it would generate $4.5 million a year. Another idea by aldermen is a tax for dining out.
"Why attack one industry?" Godfather's Pizza co-owner Mike Monseur said. "Why say restaurants only--you have to burden it all."
Popeye's Barbeque owners said it would hurt business during a bad economy.
"We actually don't know what's going to happen because of people will stop eating out," Clay said. "It leaves your business deserted almost."
Clay does recognize that more than a good sandwich needs the "fixins" in Springfield.
A 1 percent dine-out tax increase would create $2.5 million a year. As for a sales tax hike, it would not affect the purchase of prescription drugs or food at the grocery store.
A financial infrastructure plan is being drafted by the Houston administration. It may give details on a sales tax increase proposal.
Springfield: City Looking at Sales Tax Increase
Pay attention to how much sales tax you're paying a the register in the capital city, because there's talk that shoppers may soon have to fork out more. Mayor Mike Houston is admitting that the city can't afford to pay crumbling streets, sidewalks, and sewers. In the next three years, $87 million is needed for repairs. The city is looking to the taxpayer.
The city is not placing a bet on how much video gaming will produce in revenue for the capital city, but so far the luck has been good. In the month of December almost $3 million in bets were made at six locations in Springfield.
The city gets 5 percent of the net loss of bets placed, collecting $10,600 in December and $5,300 in November. Streets and sidewalks will benefit from the money.
"We're just going to have continue to get the machines operational, see what the monthly revenues are," Springfield Budget Director Bill McCarty said. "We'll be able to come up with a projection months down the road."
What is known is that another source of revenue is needed to fix $87 million of infrastructure repairs in the next three years.
"I think that we're ultimately going to have to do is look at some sort of sales tax," Mayor Mike Houston said.
Sales tax in Springfield is currently at 8 percent and if it were raised a quarter of a percent, it would generate $4.5 million a year. Another idea by aldermen is a tax for dining out.
"Why attack one industry?" Godfather's Pizza co-owner Mike Monseur said. "Why say restaurants only--you have to burden it all."
Popeye's Barbeque owners said it would hurt business during a bad economy.
"We actually don't know what's going to happen because of people will stop eating out," Clay said. "It leaves your business deserted almost."
Clay does recognize that more than a good sandwich needs the "fixins" in Springfield.
A 1 percent dine-out tax increase would create $2.5 million a year. As for a sales tax hike, it would not affect the purchase of prescription drugs or food at the grocery store.
A financial infrastructure plan is being drafted by the Houston administration. It may give details on a sales tax increase proposal.
