Higher county-wide sales tax makes sense
It was less than six months ago the Standard informed city residents it was in their best interest to raise McMinnville’s local option sales tax rate from 2.0 to 2.75 percent.
The vote, after all, was limited to only registered voters inside the city of McMinnville. Residents outside McMinnville city limits weren’t permitted to vote.
In exchange for the higher sales tax, McMinnville officials had promised to drop city property taxes by a whopping 34 cents from $1.94 to $1.60. It was a promise city leaders wasted no time in keeping as they held a special meeting the day after the sales tax referendum to send the property tax rate plummeting to $1.60.
The higher sales tax passed in landslide fashion with 1,015 people voting for it, while 199 voted against it. Considering what was at stake, it was logical for the referendum to pass by an 84 percent margin.
The higher sales tax provided city property owners a much-needed break. No longer would they have to absorb the brunt of the blow to finance city services. The higher sales tax means everyone who spends money in McMinnville is now paying for a larger chunk of those services through the sales tax.
In the simplest of terms, it means city residents are having a portion of their property tax paid by someone else. And since city residents were the only ones to vote, who wouldn’t favor that deal?
Now the shoe is on the proverbial other foot and the Standard has the same advice for Warren County residents who live outside the city of McMinnville. At this point, voting for a higher sales tax rate is in your best interest.
You are already paying the higher sales tax every time you shop at Foodland, Stewart Pharmacy or Three Star Mall. Any time you buy something in McMinnville, you are paying the higher rate.
And right now, you are getting absolutely nothing in return. Zilch, nada, diddly.
By approving the higher 2.75 sales tax rate for all of Warren County, it entitles the county school system to half of all the extra money collected in McMinnville. That’s half of an estimated $900,000 to $1.1 million in extra sales tax revenue.
This enormous amount of money will come at very little cost. It will mean raising the sales tax by three-quarters of a cent throughout the county – not just in McMinnville. That, however, shouldn’t make a perceptible impact since the county’s outlying businesses are mainly country stores and restaurants such as Centertown Market, Delores’ Market, and Prater’s BBQ.
Sure, no one wants to pay more sales tax when patronizing these fine establishments outside the city. But it’s a case of giving very little to get much in return since most Warren County residents spend the bulk of their money in town anyway.
When thinking about the retail sales at stores like Wal-Mart and Kroger, combined with the money soon to be spent at Lowe’s when it opens in late March, residents who live outside McMinnville would be foolish not to grab a piece of this free pie.
Approving a higher 2.75 local option sales tax rate is the best move for Warren County. Since the county’s share of the sales tax revenue, by law, goes straight to the school system, it’s hard to argue with supporting education.