The city will ask for the maintenance of the tax of the fifth cent

At Tuesday’s meeting, the Sundance City Council passed a first reading ordinance to keep the “fifth cent” general purpose tax going for another four years. The one percent sales and use tax was approved by the electorate in 1990 and has been maintained by the city, towns, and county every four years since then, in accordance with Wyoming law.

Clerk Treasurer Kathy Lenz reminded council of the process, which involves the city adopting the ordinance and then forwarding it to county commissioners. The one-fifth-cent tax does not need voter re-approval if it is supported by a county resolution and the ordinance is passed by at least a majority of municipalities.

Lenz also reminded the board that this tax brings in a lot of money for the city, largely because it’s typically used for matching funds for grants. For example, she said, this year the city has budgeted about $250,000 on the first four cents and $200,000 on the fifth cent tax alone.

The one-fifth cent retail sales tax is imposed on sales of goods and services in the county. It can be used for general purposes and is divided between the county and the municipalities.

A resolution was passed at the regular meeting of County Commissioners to maintain the fifth cent tax.

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