FAYETTEVILLE -- Voters in Farmington and Greenland approved 1 percent sales taxes Tuesday.
The sales tax in Greenland will increase by 1 percent. It passed with 59 votes for and six votes against.
The Farmington tax passed with 183 votes in favor of the taxes to 87 not in favor.
"This is an awesome deal for our city," Farmington Mayor Ernie Penn said. "We're going to be able to make improvements to the areas affected by the recent flooding, and revenue will go to help expand our fire department."
A 1 percent sales tax increase in Greenland would bring in about $120,000 a year and pay for $1.5 million in bonds for wastewater collection and system improvement. The tax sunsets when the bonds are paid, city officials have said.
Greenland has a 2 percent city sales and use tax. The 1 percent increase puts the total sales tax rate at 10.75 percent. The new tax will take effect at the end of this year.
Greenland Mayor Bill Groom has said the city doesn't have the capacity to add to the wastewater system serving about 350 houses. The system must be fixed to save residents money long-term and to handle growth, he said.
The Farmington tax will replace a 1 percent tax expiring in October. The tax brings in $688,000 annually and has been used to pay for a sewer bond, Melissa McCarville, city business manager, has said.
The city plans to take out a maximum of $5.1 million in bonds for improvement to streets, parks and recreation. The new tax would go into effect Oct. 1 and be permanent. Half the revenue from the new tax will pay off the bonds and the other half is for the city's general operations.
When the street and park bonds are paid off, the revenue would go into the general fund and could be used for other projects.
Farmington has a 2 percent sales tax for a total sales tax rate of 9.75 percent.
NW News on 06/14/2017
Print Headline: Farmington, Greenland pass sales and use taxes