6.2 Levy Transient Guest Tax
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
8/10/2009
TIME
4:00 P.M.
AGENDA SECTION
NO:
6
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
CITY MANAGER'S OFFICE
ITEM
NO.
Page 1
2
BY:
BY: Jason A. Gage, City Manager
ITEM: Resolution No. 09-6647
A resolution levying a Transient Guest Tax in the amount of 6.7% on the gross receipts of sleeping
accommodations in the city of Salina, Kansas for the promotion of tourism and conventions; and
repealing Resolution No. 91-4357 and Resolution No. 09-6617.
BACKGROUND:
In April of this year the City Commission approved Resolution No. 09-6617, which set the Transient
Guest Tax (TGT) rate at 6.75%, beginning October 1st. The purpose was to assist in funding
Bicentennial Center improvements, enhanced marketing of Oakdale and Kenwood Parks, and a local
cultural marketing grant program.
Since that time the Kansas Department of Revenue has informed the City that their data system
cannot support an increment of hundredths of a percent for the transient guest tax calculations like
they can for sales tax calculations. As a result, the City needs to amend our TGT to either 6.7% or
6.8%. The annual impact of moving to 6.7% is very minimal at approximately $10,000 per year.
Attached resolution No. 09-6647 includes this amount. Certainly, the City Commission has the
discretion to amend the amount if desired.
The resolution includes the same provisions as the prior version, including the 1 % reduction in the rate
after 10 years. The Salina Area Chamber of Commerce is currently in the process of coordinating the
creation of a marketing plan for Oakdale and Kenwood Parks, and the guidelines for the local cultural
grant program. We expect to have these action items to the City Commission in a few weeks.
FISCAL NOTE:
This change will reduce the estimated incremental, annual TGT revenue by $10,000, from $350,000
to $340,000.
RECOMMENDED ACTION:
City Commission alternatives include the following:
1) Approve Resolution No. 09-6647 setting the Transient Guest Tax rate at 6.7%, as
proposed; or
2) Approve Resolution No. 09-6647 with an amended amount equal to 6.8% or other amount
as designated by the City Commission.
Staff recommends Alternative #1.
Attachments: Resolution No. 09-6647