City to seek continuation of fifth cent tax

At Tuesday’s meeting, the Sundance City Council passed its first reading of an ordinance for the “fifth cent” general purpose tax to continue for another four years. The one percent tax sales and use tax was approved by the electorate in 1990 and has been continued by the city, towns and county every four years since that time in accordance with Wyoming statute.

Clerk Treasurer Kathy Lenz reminded the council of the process, which involves the city passing the ordinance and then taking it to the county commissioners. The fifth cent tax does not need to be reapproved by voters if it is supported via resolution by the county and the ordinance is adopted by at least a majority of municipalities.

Lenz also reminded the council that this tax brings in a lot of money for the city, largely because it is usually used for matching funds for grants. For example, she said, this year the city budgeted around $250,000 from the first four pennies and $200,000 from the fifth cent tax alone.

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

A resolution was passed at the regular meeting of the county commissioners to continue the fifth cent tax.