City Sales Tax Extension

Posted by VCBCDC on 05-06-2022

CITY SALES TAX EXTENSION
"An extension of time only, no new or increased taxes."

Be sure to cast your vote!
June 14, 2022  |  7:00 AM - 7:00 PM  |  Barnes County Courthouse
Absentee ballots available at the Barnes County Courthouse!

UPCOMING PUBLIC PRESENTATIONS

THE VOTE

On June 14th, 2022 during Valley City's primary election, there will be an advisory vote on two questions regarding city sales tax extension. Find out about this extension of time and why it's vital to Valley City's quality of life below!

An Advisory Vote On:

1. Sales tax extension supporting Property Tax Relief, Retail Enhancement and Economic Development
2. Sales tax extension supporting City Infrastructure

Property Tax Relief, Retail Image Enhancement & Economic Development

Ballot Question:

Shall the Board of Commissioners of the City of Valley City adopt the ordinance extending a total of one-percent city sales, use and gross receipts taxes dedicated to economic development, basic industry, job development, tax relief, infrastructure, other special requests, service and retail business development, and image enhancement?

What does this ballot question affect?

1. Property Tax Relief (25% of the 1%)

• Supports police and fire departments as well as city government and public services
  • Community members saved $4.8M over the last 30 years; averaging $158,673 per year

2. Retail Image Enhancement (5% of the 1%)

• Enhance the overall image of businesses to build stability and growth
  • Reinvested $765,000 into 123 service and retail business improvements
    • Storefront updates, business signage, landscaping and structural improvements

3. Economic Development (70% of the 1%)

• Creates jobs and drives community growth which then supports business retention and expansion
  • Example: 14 primary sector businesses employ 700 people; at an annual wage of $43,000, total payroll is $30M each year
    • This new wealth creation generates an economic impact of $150M throughout all sectors of the economy

Renew & Replace City Infrastructure

Ballot Question:

Shall the Board of Commissioners of the City of Valley City adopt the ordinance extending a total of one-percent city sales, use and gross receipts taxes dedicated to funding of city infrastructure renewal and replacement project?

What does this ballot question affect?

On average, Valley City invests $1M each year in infrastructure improvements (roads, sidewalks, utilities, etc.) To cover these costs, 1% of the 2.5% sales tax is dedicated to the Renew & Replace City Infrastructure Fund (R&R), and is a direct savings to residents.

The R&R Fund (1% sales tax) saved residents around $10.8M on city infrastructure costs over 15 years; averaging $798,191 per year.

THE NUMBERS:

$798,191 (R&R Fund) + $158,673 (Property Tax Relief) = $956,863 per year in direct saving to residents

If these sales tax dollars for infrastructure were not in place, the impact to a homeowner would potentially be an increase of 15% in property taxes.

• Examples:
  • $200,000 home would go from $3,000 to $3,450 in property taxes
  • $300,000 home would go from $4,500 to $5,175 in property taxes

Frequently Asked Questions

Q) How does this affect me?
A) City sales tax funds are strategically reinvested into improving the overall quality of life for everyone.

Q) Is this a new or increase in taxes?
A) NO. This would only extend the existing sales tax.

Q) Why would I want to extend sales tax?
A) An extension to sales tax ensures continued business and community growth.

Q) What if I won't be around on June 14th?
A) Absentee ballots are available NOW at the Barnes County Courthouse.

Q) What is taxed?
A) Retail sales excluding, groceries, medicine, rent & mortgage, utilities, services, car payments, etc.

Q) Who pays city sales tax?
A) Every purchaser (resident, visitor, student, etc.)

Q) Who can vote?
A) Any resident (within city limits) 18 years or older.

Q) Can college students vote?
A) YES. Students only need to present their VCSU student ID or proof of Valley City address.

THE IMPACT

What Has City Sales Tax Done for Valley City?

• Saves residents $956,863 in property taxes each year
• Improves childcare opportunities
• Reduces property taxes by 15%
• Supports police and fire departments
• Saved residents $4.8M in the last 30 years
• Provides employment opportunities
• Supports community amenities and activities

What Has City Sales Tax Done for VCSU?

• Gaukler Family Wellness Center
• New turf for Shelly Ellig Field
• $167,000 to market the University
• Nursing Program
• Master of Education Program
• Dual credit programs
• University support at legislature
  • Rhodes Science Center
  • Communication and Fine Arts Building

What Has City Sales Tax Done for Economic Development?
Valley City - Barnes County Development Corporation: A Significant Return on Investment

Professional Services
Director of Development, Jennifer Feist

• Assists businesses with accessing financing and workforce development programs
• Facilitates company locations (site, building, city infrastructure)
• Coordinates overall business and community growth to advance quality of life
• Collaborates with businesses as well as city and county governments

Resource Development Specialist, Trinity Nelson

• Provides a direct benefit to the community by bringing outside grant funds into the community
  • Projects include public health, recreation, infrastructure, parks and education
• Assisted Barnes County entities with over $13.8M in grant funds
• Produces a significant return on investment; over $660,000 in grant funds secured annually

Retention & Recruiting Coordinator, Kara Anderson

• Assisting employers with recruiting
• Matching job seekers to businesses
• Hosting career and job fairs
• Providing community tours
• Improving retention of Barnes County employees
• Produces a significant return on investment
  • 54 people participated in training
  • 64 businesses assisted
  • 186 job seekers assisted in Workforce Center
  • 1,200 resume referrals since 2019