Tax increase to take effect July 1

The local sales tax increase voters approved in November becomes a pocketbook reality on July 1.

State Tax Commissioner Doug Ewald issued the announcement on Tuesday, confirming that Sidney's local sales and use tax will increase to two percent, with funds going toward city infrastructure improvements.

Sales tax receipts "are distributed to the communities where they were collected," Ewald explained in a prepared statement.

Half of the funds collected from this tax will go toward street repair and construction projects. Sidney plans to extend Toledo and improve the intersections of 13th and 14th Avenues at Illinois St. The rest of the monies will help support a new swimming pool, roads and walkways in the park, drainage and the golf course irrigation project.

"We tried to come up with a strategy to fill a lot of needs," City Manager Gary Person said.

The increase amounts to half a cent. Because it is a sales tax, visitors making purchases along I-80 and the Cabela's retail center will contribute to the various projects, made necessary both by wear and city development.

Sidney was one of only three communities to receive approval for an increase under a state program allowing increases as long as the city gave up another source of revenue and signed an interlocal agreement with another government.

The city will rescind the one-cent occupation tax on restaurants starting July 1. They also agreed to terms with the Natural Resources District for a joint stormwater mitigation project.

"I give the voters a lot of credit," Person said. "They recognized the needs of this community."