What is the Expiring 6th Cent Tax?

By Bill Nelson, Director

April 30, 2008

Most everyone in Natrona County is familiar with the “5th Cent” sales tax which finances many community projects. Natrona County voters have approved the 5th Cent in 13 successive elections since 1974. Natrona County citizens are probably less familiar with the expiring “6th Cent” tax that 13 other Wyoming counties have used to build special projects.

With voter approval, Wyoming counties may adopt a Specific Purpose Excise Tax (SPET) or “expiring 6th Cent” for capital improvements. This expiring 6 th Cent works the same way as the 5th Cent, with one major exception. The 6th Cent ballot specifies a project cost and when that amount is raised, the 6 th Cent tax ceases.

Albany, Campbell, Carbon, Crook, Fremont, Goshen, Laramie, Niobrara, Park, Sheridan, Sweetwater, Teton, and Washakie counties have successfully used this process. Examples of their projects include: a new County Building, a Health Building, a County Detention Facility, Wastewater Treatment Plants, parks, a Hospice facility, the Cam-Plex, a county day care center, a senior center, and a new public library in Cheyenne.

A SPET has appeared on Natrona County ballots three times, failing each time. In 1991, the ballot carried a large group of projects including: a Performing Arts Center, National Historic Trails Center, Emergency Warning System, Wyoming Medical Center project, Casper Day Care and the Child Development Center. In both 2003 and 2004, a Courthouse SPET project was placed before Natrona County voters, also without success.

To be placed on the ballot, the expiring 6th Cent proposal would need the approval of four of Natrona County’s six municipalities. Additionally, the County Commission must authorize placement on the ballot. All this must occur at least 70 days before an election.

Some have asked why the Library Board is not proposing a bond issue. By law, Natrona County may only issue General Obligation bonds up to 2% of Total County Valuation, which is currently $1.2 billion. As such, a bond would yield $24 million, which is not enough to build a new library.

Currently, one penny of sales tax is yielding $19.9 million annually. So, a penny tax for approximately 18 months could raise enough funds to create an adequately-sized library to serve our growing community. The Trustees and Commissioners believe the citizens will support such an initiative, especially since visitors to Natrona County will be purchasing items and helping to pay for the project.

Some citizens may be concerned that an expiring 6th Cent might not go away. Wyoming Statute and the peoples’ vote govern the SPET tax. By law, the tax stops at the end of the quarter in which the goal is reached. It is illegal to extend the 6th Cent beyond its authorization period.

The Trustees and Commissioners believe an expiring 6th Cent is the most reasonable option to fund a new library building, and are planning to put the proposal on the ballot this November. During the current period of economic prosperity in our county, an investment of one penny could create a modern library to serve our community for the next century.

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