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Sales Tax Talk: Tax facts and the impact / burden of an additional 1%

This is the second in a series of stories regarding the proposed 5th cent tax for Park County. This is part one of the series. Part three will be Sales Tax Talk: The Opposition. (Park County Wyo.)- The following facts and information have been provided by the City of Cody and Wyoming Office of Economic Analysis In part one of this series Basin Reboot reported on the projects a proposed 5th cent tax could fund and discussed the upcoming survey regarding the tax. In part two of this series we will get into the numbers and impact of an additional 1% sales tax. *Just the facts: * As it stands right now the state of Wyoming has a general 4% sales tax that applies to all 23 counties in the state. The division of the collected revenue to counties is 30% with the State of Wyoming keeping the remaining 70% of the collected taxes. Currently the revenue from the 4% sales tax given by the State to Park County makes up 17% of Park Counties general fund, 37% of Cody's, 30% of Powell's and 23% of Meeteetse's. As local governments around the state get less than 1/3rd of the tax revenues many counties have implemented 5th cent taxes. In fact of the 23 counties in Wyoming 21 have an additional tax. The two that do not are Sublette and Park Counties. The revenue generated from property taxes in Park County make up 6.5% the general fund for Cody, and Powell and 2.8% of the general fund for Meeteetse. The stated timeline for a 5th cent tax would be four years if approved. The tax would then be voted on to either be renewed or scrapped. There are 49 exemptions to sales tax in Wyoming including: gas, real estate, grocery store foods, most agricultural products, and prescriptions are among the exempted items. *Impact and estimated burden: * According to information provided by Wyoming Office of Economic Analysis, these are the numbers which apply to Park County Residents. They are be broken down by income level and the estimated tax burdens for a family of three at that income level. *House Hold Income of $25,000:* If your household income is $25,000 the average amount you spend on sales tax per year is $240 or .96% of your annual income going towards sales tax. With an additional one percent tax a household earning $25,000 would pay $300 a year in sales tax or 1.2% of their annual income. This is an increase of $60 per year. *House Hold Income of $50,000:* If your household income is $50,000 the average amount you spend on sales tax per year is $317 or .63% of your annual income going towards sales tax. With an additional one percent tax a household earning $50,000 would pay $397 a year in sales tax or .79% of their annual income. This is an increase of $80 per year. *House Hold Income of $75,000:* If your household income is $75,000 the average amount you spend on sales tax per year is $481 or .64% of your annual income going towards sales tax. With an additional one percent tax a household earning $75,000 would pay $602 a year in sales tax or .80% of their annual income. This is an increase of $121 per year. *House Hold Income of $100,000:* If your household income is $100,000 the average amount you spend on sales tax per year is $543 or .54% of your annual income going towards sales tax. With an additional one percent a household earning $100,000 would pay $678 a year in sales tax or .67% of their annual income. This is an increase of $135 per year. Sales Tax Facts Number Three: The Opposition, the final story in this series will be posted on Monday. #reboot #news