Whether a “temporary” sales tax increase might enjoy a longer life was discussed before it was adopted and implemented two years ago by the Kingman City Council. The current council is now wrestling with the question of whether the one-half percent sales tax increase of 2013 should be allowed to expire next summer, or if it should be extended.
Finance Administrator Tina Moline told council members during their June 16 meeting that the tax increase generates about $2.8-million a year that the city will lose if it sunsets.
Council member Larry Carver noted that the previous council adopted the temporary increase on the premise that a replacement revenue stream would be defined and tapped. Carver said he could not support an extension since the city failed to facilitate or secure a new revenue source.
Council member Mark Abram’s motion to further consider extending the tax increase passed with Carver dissenting in the 6-1.
Moline said the Council can take action on a possible extension of the sales tax increase after conducting a public hearing during its July 21 meeting.