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Provide City Council with an update on the Monthly Sales Tax Revenue for the month of December reporting.
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INITIATOR: Rebecca Johnson, Finance Director
STAFF INFORMATION SOURCE: Rebecca Johnson, Finance Director
BACKGROUND: In accordance with the True North Culture Statement by adhering to transparency and Trust, Provide an update to City Council on the Sales Tax Revenue for the month of December reporting.
EXHIBIT: Excel Graph
KEY ISSUES: Lawton, Oklahoma's Capital Improvement Projects (CIP) are funded through sales tax. Lawton's sales tax rate is 4.13%, which includes state, county, and city taxes. 2.125% of the sales tax in Lawton goes into a fund for CIP projects. CIP projects include improvements to streets and bridges, water and sewer lines, building renovations, public safety investments, and a proposed STEM facility.
In August 2024, voters approved extending the CIP tax from 2034 to 2040. The extension makes one cent of the tax permanent, with half a cent for water and sewer, a quarter cent for parks, and a quarter cent for streets and bridges.
Lawton is dependent on sales tax revenue because Oklahoma state law only allows ad valorem tax for certain uses, like CIP projects. The city also doesn't have access to property tax for operations.
FUNDING SOURCE: Report only no funding required.
STAFF RECOMMENDED COUNCIL ACTION: Report only no action required.