Approval by Holts Summit voters of a measure extending the city's one-half cent capital improvements sales tax means the city will be able to maintain its infrastructure, Holts Summit City Administrator Brian Crane said Wednesday.
Voters approved the one-half cent sales tax extension for another 20 years by a vote of 911 to 467, a margin of 66.11 percent to 33.89 percent.
Crane said the original sales tax, which was approved in 1993, was used mainly to build and extend the city's sewerage system. The renewal will help all aspects of the city's infrastructure to be maintained properly, he added.
The current one-half cent sales tax approved in 1993 earmarked for capital improvements will continue in effect until March 31, 2013. At that time the measure approved Tuesday will start and is scheduled to expire on March 31, 2033.
The one-half of 1 percent tax now generates about $140,000 in revenue each year. It is paying off a sewer bond in the Sewer Fund. Crane said the city does not anticipate issuing any bonds with the money raised by the tax extension. The extension would make additional funds available for improvements.
Holts Summit does not have a property tax but it does have a total of 3-cents sales taxes. In addition to the one-half-cent sales tax for capital improvements approved Tuesday, Holts Summit has a 1-cent sales tax earmarked for transportation, a 1-cent sales tax earmarked for administration, a one-fourth-cent sales tax earmarked for animal control, and a one-fourth-cent for emergency management.