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Tax rate will drop soon

HUTCHINSON, Kan. — The sales tax rate for Reno County is about to make a major drop.

Reno County is preparing paperwork that will allow it to call on the bonds that were used to finance the Reno County Correctional Facility earlier than the original date set.

The call on the bonds means two things for the county. In the short run, it will save the county about $880,000 in interest. And by the middle of summer, the ½ cent sales tax used to pay for the jail will go off the books. That will lower the Hutchinson sales tax to 8.6 percent. The lower sales tax would go into effect July 1.

The drop would push Hutchinson below most cities of similar size, including Leawood at 9.1 percent; Salina at 8.75 percent; McPherson at 9.0 percent; Manhattan at 8.95 percent; Pittsburg at 9.0 percent; Dodge City at 8.65 percent; Garden City at 8.9 percent and Lawrence at 9.05 percent.

The matter will come up for discussion on Tuesday, March 5. Action could be taken by the county commission March 19.

Of the 30 similar cities in the state, Hutchinson’s sales tax ranking would fall from 18th to the 11th lowest.

The call on the bonds is coming approximately three and a half years ahead of the September 2023 sunset date.

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