Sales Tax

The City of Lawrence utilizes tax dollars in a variety of ways.  Each summer, the City Commission adopts the budget of the next year.  Sales taxes are an important source of revenue for funding the budget, providing almost half of the revenue for general city expenses.

Sales Tax Rate in Lawrence: 8.70 percent

Breakdown of sales tax
(as of July 1, 2013)
State tax 6.15%
County taxes 1.00%
City taxes 1.55%
Total tax rate 8.70%

As of July 1, 2013, the sales tax rate in Lawrence is 8.70 cents of every taxable dollar.  This includes State, County, and City sales taxes. 

The City sales tax for Lawrence is 1.55 cents.  Of this, 1 cent of the sales tax supports general operations.  Another .3 cents is used for streets and infrastructure, while the remaining .25 cents supports Lawrence Public Transit.  These infrastructure and transit taxes will expire in the year 2019.  The City also receives approximately .58 cents of the County sales tax.  Together, these sources generated $30.8 million of revenue in 2011.

 

Special Tax Districts

Special taxing districts are used in other nearby cities as well as throughout the State. Some nearby retail destinations with special sales taxes include Village West in Kansas City, Kansas, and Oak Park Mall in Overland Park. The Department of Revenue maintains an up-to-date list of all special taxing districts in Kansas at https://www.kssst.kdor.ks.gov/lookup.cfm.

In Lawrence, there are two areas where an additional sales tax is charged.  There is currently a 1-cent Transportation Development District sales tax in the following locations:

The Oread Hotel
Adjacent to the University of Kansas at 12th and Indiana, the City Commission approved a 22 year TDD for this project in 2008.  This luxury hotel is 11 floors tall providing 99 rooms, multiple bars and restaurants, a day spa, and commanding views of the Wakarusa River Valley.  The TDD sales tax will be in place for 22 years and will be used to help pay for up to $11 million in public improvements including street enhancements, new pedestrian walkways, an underground parking garage, street lights, and infrastructure such as sewer, water, and gas lines. 

Bauer Farms
This project is located at the northeast corner of the intersection of 6th and Wakarusa Streets.  Approved by the City Commission in October of 2008, Bauer Farms provides a variety of retail stores for residents of western Lawrence.  The TDD sales tax will be in place for 22 years and will help pay for up to $6.8 million in public improvements including new sidewalks, streets, sewer and water infrastructure, and lighting for the district.

All special taxing districts in the City are mapped at the City's GIS web page.

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