Jackson and Teton County officials support tax resolution

The Jackson Town Council and Teton County Commission will ask voters to approve a resolution placing an additional 1% of General Revenue Sales Tax on the November 8 general election ballot. If approved, collections would begin in April 2017.

On March 15, 2016 the Town Council and County Commission unanimously approved a resolution to place a SPET proposition on the primary election ballot in August of 2016 to fund the stabilization of the landslide above West Broadway. Should this SPET initiative be successful, this would maintain the 6 cent tax that is currently in place.

“It’s in the public interest to resolve the landslide issue,” said Town Manager Bob McLaurin. “Leaving that landslide hanging above our utilities threatens not only access to Yellowstone, but water service to the better part of West Jackson.” According to sensors located on the hillside, the landslide is still moving approximately a quarter of an inch a month and the United States Geological Survey has confirmed that there is a possibility of a catastrophic failure of the hillside.

If voters elect to support the West Broadway SPET initiative in August, it is anticipated that the $6 million needed to stabilize the Town’s portion of the hillside will be generated and collected prior to April of 2017 at which time collections for this SPET will cease.

If the voters approve the General Revenue Sales Tax in November the sales tax can be used for general purposes by both the Town and the County in an effort to focus on community issues such as housing and transportation. Town and County elected officials will consider a Policy Resolution dedicating funding generated from the revenue of this 1 cent general sales tax for the identified community priorities of housing and transportation at an upcoming meeting.

“This is not a tax increase,” stated McLaurin. “If the residents vote in favor of this 1% General Revenue Sales Tax the sales tax will remain at 6%. Furthermore it should be noted that visitors pay roughly two-thirds of this tax and that food is not taxed.”

Of this tax rate, 4% is collected by the State of Wyoming with a portion redistributed back to communities, 1% is imposed as a 5th cent of general revenue sales tax split between Teton County (55%) and the Town of Jackson (45%), and the remaining 1% is currently imposed through the Specific Purpose Excise Tax (SPET) for specific community identified projects. It is estimated that visitors to the valley contribute approximately 60% of money generated by this sales tax dedicated for SPET projects.

“It’s just not right to sit on our hands and do nothing,” said Mayor Sara Flitner. “I know a few of us preferred SPET, but I’m going to hold my nose, and feel good about compromising. Let’s work together to get badly needed resources in place for our town.”

Should the SPET initiative for landslide remediation pass in August and the General Revenue Sales Tax initiative pass in November, based on the current collection projections, the current 6% sales tax would remain constant. A number of variables may affect the tax rate remaining at 6% including whether voters support the August SPET initiative, whether voters support the November General Revenue Sales Tax Resolution, and whether sales tax collections remain consistent with current trends.