New development tax earns city council OK
A fee will be charged on new developments in Tonganoxie, in an effort to increase money available to build and maintain city streets.
On Monday, city council members approved an ordinance that calls for a five-cent fee on each square foot of buildable land. The fee would be imposed at the time the property is platted and could be paid at that time or before a building permit is issued. Funds generated from the tax will be earmarked for transportation improvements in Tonganoxie.
"This is for building streets in the community," said Chris Clark, city administrator.
Council member Kathy Graveman opposed the tax. Council members Janet Angell, Pat Albert and Emmett Wetta voted in favor of the fee. Council member Steve Gumm was absent on Monday.
In March, council members adopted a charter ordinance that allowed adoption of the fee. At that time, the council appointed a five-member committee to determine the amount of the fee.
The excise tax, which will take effect Aug. 1, will not apply to property that is dedicated to the city for rights of way or for city parks, Clark said. In addition, it does not apply to building remodels or expansions.
A five-cent tax based on issuance of 75 building permits a year could generate an estimated $50,000 annually, according to Clark.