Mandeville to vote on sales tax renewal

By Suzanne Le Breton
St. Tammany News
Published on Wednesday, March 17, 2010 12:25 AM CDT



In addition to electing a new mayor, Mandeville residents will also vote on a sales tax renewal on March 27.

The city first passed the half-cent sales tax in 1991. It was renewed in 2001 and will expire in 2011 if a renewal is not passed on March 27.

Over the last 10 years, the tax has generated $24 million. However, Finance Director Milton Stiebing said that number is inflated and not an accurate assessment of how much the tax will normally bring in during a 10-year period because that number includes the large sales tax revenue jump the area experienced when people were rebuilding homes and replacing belongings in the years following Hurricane Katrina.

He said sales tax revenue jumped in 2006, 2007 and 2008, but it has largely leveled off and returned to normal, if not lower than normal, numbers.

He estimates the tax, if the renewal is approved by voters, will bring in $20-$22 million in the next 10 years.

This tax is dedicated to streets and can only be used for streets, sidewalks, bike paths, bridges and roadside drainage.

Most of the money the city receives from this tax is used to pay for the annual street improvement program, which pays to resurface the streets in the city.

This is one of three sales taxes collected in the city.

A 1-cent sales tax, dedicated to paying off bonds used to pay for water and sewer improvements will be up for renewal in 2019. Excess money generated from this tax beyond what is needed to pay off the bond debt is used to fund water or sewer improvement projects.

The third tax, a 1-cent tax, goes toward the general fund and helps pay for the daily operations of the city. It is a permanent tax that does not have to be renewed.

Stiebing said the city’s bond attorney has mentioned making the sales tax dedicated to streets a permanent tax as well since it is an ongoing and recurring expense.

However, he said Interim Mayor Edward “Bubby” Lyons opted to not take that route during this election because he is unsure in this economy what the sales tax outlook will be in the coming years.


Comments

No comments posted.

WRITE A COMMENT

Use the form below to post a brief comment to this story, or respond to other readers. Please use the word count tool to assist you in keeping your remarks to 100 words or fewer.

Comment posters are responsible for the opinions they express and the accuracy of the information they provide. We urge comment writers to treat this as a public forum where manners matter. We encourage a collegial, non-insulting tone. All readers comments must be approved by our staff before posting to the Web site. They review submitted comments periodically during the day for offensive or off-topic content before posting. Be aware, in accordance with the Communications Decency Act and provisions upheld in judicial appeal, that you are responsible for comments posted on this Web site. The St. Tammany News is not liable for messages from third parties.

DO NOT POST:
* Potentially libelous statements or damaging innuendo.
* Obscene, explicit, or racist language.
* Personal attacks, insults or threats.
* The use of another person's real name to disguise your identity.
* Comments unrelated to the story.
* Personal Information (phone numbers, addresses, etc.)

Opinions, advice and all other information expressed in thesttammanynews.com's reader comments represent the individual's own views and not necessarily those of the St. Tammany News. The St. Tammany News does not endorse and is not responsible for statements, advice or opinions offered by anyone other than authorized St. Tammany News spokespersons.

Your thoughtful contribution to the online discussion is appreciated.

(optional)
Current Word Count: