Dec. 26—McAlester city councilors passed a resolution stating their opposition to the proposed quarter-cent sales tax increase proposed by Pittsburg County commissioners.
City councilors passed the measure on a split four-to-one vote during their regular Tuesday night meeting at City Hall.
A county-wide election on the county's proposed quarter-cent county sales tax increase is set for January 9, 2024.
County commissioners have maintained the proposed quarter-cent sales tax increase is to benefit the Southeast Expo Center and the Pittsburg County Fairgrounds. Language on the ballot leaves the door open to use the proceeds from the proposed sales tax on other county-owned properties.
City councilors discussed the proposed resolution of opposition before taking a vote.
McAlester Mayor John Browne said he placed the opposition resolution on the city council's meeting agenda.
"It's not that we don't want the county to have money to operate," he said.
Browne said the city expects at some point it's going to have to spend between $60 million and $100 million on the city's water treatment plant and may have to ask city voters to pass another bond issue to pay for it.
Ward 4 Councilor Randy Roden said he opposed the city of McAlester's opposition measure. Roden said he didn't think the city needs to be involved in the county's politics.
"It's not politics," said Browne. He said the council's responsibility is to the city of McAlester.
Roden maintained the city should not interfere with the county's sales tax proposal.
"We need to try and work together," Roden said. "We're getting farther and farther away from the county commissioners."
Roden said he's glad the county commissioners took over operations of the Expo Center from the city of McAlester "and got the monkey off our back."
He said he will not personally vote for the commissioners' sales tax proposal or any tax increase, but felt the city should not pass a resolution opposing the county's proposal.
Browne maintained the city was not seeking an adverse relationship with the county.
"We're not trying to not get along with them," Browne said. "A relationship has two sides."
Joining Browne to vote in favor of the city's resolution opposing the proposed county sales tax increase were newly-elected Ward 3 Councilor Chris Stone, along with Ward 5 Councilor Billy Jack Boatright, who was just re-elected to a new four-year term, and Ward 6 Councilor Kevin Beaty.
Roden cast the sole "no" vote against the city's measure. Not present were Ward 1 Councilor Weldon Smith and Justin Few, Ward 2.
The McAlester City Council's resolution states the city's opposition to Pittsburg County's proposed quarter-cent sales tax increase on seven points, as maintained by the city, including:
—"The city of McAlester's population makes up approximately 40 percent of Pittsburg County and as such is by far the largest producer of sales and use taxes for the county.
—"Our total sales tax percentage is 10 percent with 15 percent of that total being levied by Pittsburg County.
—"The city currently produces approximately $4 million for county roads and receives nothing back for roads within the city.
—"Cities in Oklahoma receive only sales tax, while Pittsburg County receives both sales and ad valorem property taxes and therefore have another method of funding their plans.
—"The city operated the Expo Center for years without assistance from Pittsburg County.
—"The county proposed sales tax increase of one quarter of one cent may be used for any building owned or operated by Pittsburg County is too broad of use.
" The proposition if passed has no sunset feature and therefore is set for perpetuity.
"Now, therefore, be resolved that the city of McAlester stands in opposition to this sales tax increase and encourages Pittsburg County to reconsider the use of sales tax to fund their ambiguous plan," the city's of McAlester's resolution concludes.
Commissioners passed two resolutions during their regular Oct. 30 meeting, setting a Jan. 9, 2024, election on a proposed quarter-cent sales and use tax increase, along with a proposed 5% hotel/motel lodging tax. The proposed county 5% hotel/motel lodging tax would not affect any municipality in the county that already has its own municipal hotel/motel tax, county commissioners said.
Both county proposals will be presented as a separate stand-alone item on the Jan. 9, 2024 ballot, with all registered voters in Pittsburg County eligible to cast ballots on the measures. If one or both of them passes, they will not go into effect until April 1, 2024.
Language that will be on the Jan. 9 proposed sales tax ballot states:
The proposed quarter-cent sales tax increase is "for the purpose of providing funding for the operation, maintenance, expansion, construction or new construction of facilities owned or utilized by the county, including the Pittsburg County Fairgrounds and Southeast Exposition Center."
Adding an additional quarter-cent, or .25% sales tax, to Pittsburg County's current 1.50% sales tax would raise the total county sales tax to 1.75%.
Pittsburg County's current 1.50% sales tax that is already in place breaks down as follows:
—One cent, or 1%, goes to county roads.
—Another quarter-cent goes to fire departments in the county, including all volunteer fire departments as well as the McAlester Fire Department.
—The remaining quarter-cent county sales tax is split two ways: Three-fourths of that quarter-cent goes toward operations of the Pittsburg County Jail and the remaining fourth of that quarter-cent goes to the Pittsburg County Animal Shelter, said Pittsburg County Clerk Hope Trammell.
Passage of the proposed county quarter-cent sales tax increase in Pittsburg County would affect the total tax collected in municipalities in the county in different ways, depending on their individual municipal tax rates.
Oklahoma currently collects a 4.50 % sales tax of its own from every municipality in the state. If the quarter-cent, or .25%, proposed new sales tax passes, bringing the county total to 1.75%, then the total tax collected by the state of Oklahoma and Pittsburg County equals 6.25%.
If the proposed quarter-cent county sales and use tax increase passes, the state and county total will have to be added to the city sales tax rates each municipality already has in place — which varies from town-to-town.
McAlester currently has a 4% city sales and use tax in place. It's the result of the Nov. 9, 2021 election, in which city of McAlester voters passed an additional city quarter-cent sales tax increase for water improvements. That raised the then-3.75% city sales tax rate collected to benefit the city up to the current 4%.
If the state's 4.50% and the proposed county sales tax total of 1.75 are added to that, the total sales and use tax collected in McAlester would then total 10.25% — if the proposed county sales passes in the Jan. 9 election.
Regarding the county's proposed hotel/motel tax, County Commission Chairman/District 1 Commissioner Charlie Rogers previously said it's primarily aimed at the Airbnbs. An Airbnb is defined as residential property used for short-term rentals to vacationers and other travelers.
Properties used for an Airbnb range from entire houses to a single room and even boats. Most of the Airbnbs that would be affected by the county's proposed 5% hotel/motel tax are around Lake Eufaula, commissioners said.
