Continuing the Crook County News Since 1884

SPOT tax to switch off

The county’s Specific Purpose Option Tax (SPOT) has reached its $6.25 million total and will be switched off at the end of December. This will reduce sales and use tax locally by one percent until such time as voters once again approve the sixth penny on their ballots.

The Specific Purpose Sales and Use Tax (SPOT), better known as the “sixth penny” or “one percent tax,” is an optional tax with a strictly defined purpose. The SPOT Tax has been use to raise extra revenue for counties and municipalities since it was authorized by the Legislature in 1984.

In Crook County, it is an additional penny on top of the obligatory four percent state sales tax and the one percent voter-authorized general purpose tax.

SPOT works slightly differently to those first five pennies: instead of running for a certain period of time, voters are asked to approve a specific dollar amount for a specific set of projects. The tax only remains in effect until this amount has been collected.

The most recent SPOT tax was voted for during the November, 2014 elections and became effective on April 1, 2015. The county and municipalities asked for a total of $6.25 million and the money raised was divided equally among the towns and cities of Hulett, Moorcroft, Pine Haven and Sundance and Crook County.

Each entity specified the project for which its $1.25 million would be used. Sundance sought funds for street improvement, sewer and water upgrades, landfill closure and other infrastructure improvements, while Pine Haven wished to replace, enlarge and extend its sewer and water systems, improve its streets and undertake other infrastructure projects.

Hulett requested $1.25 million to purchase equipment for public works, improve streets, curbs and sidewalks and for replacement and improvement of water and sewer systems. Moorcroft wanted to improve streets, water and sewer systems, while Crook County wanted to spend its $1.25 million to purchase Road and Bridge equipment and construction materials to rebuild county roads.

According to a letter circulated to all Crook County’s entities from the Crook County Treasurer’s Office, the final distribution of sixth penny funds takes place this month and will total $30,720.64 per entity. Effective January 1, the sales tax rate for the county will decrease from six to five percent until such time as the SPOT appears on the ballot and is again approved by voters. Any excess tax collected will be held for a year and then distributed as required by state statute.