Proposed Affordable Housing and Emergency Shelter Services Sales Tax
The City of Lawrence currently has an affordable housing sales tax that was passed by voters in November 2017. Collection for this sales tax began on April 1, 2019, and was set to continue for 10 years – through March 31, 2029.
The question for Lawrence voters this November will be whether to repeal the existing 0.05% sales tax for affordable housing projects and programs and replace it with a sales tax of 0.10% that would fund both affordable housing projects and programs and temporary emergency shelter facilities and related services for people experiencing homelessness.
If the proposed sales tax ballot measure is passed, the current sales tax would be repealed and replaced. Collection on the new tax would begin April 1, 2025, and continue through March 31, 2035.
If the proposed sales tax ballot measure is NOT passed, the current sales tax at the rate of 0.05% would continue through March 31, 2029. There would likely be an additional vote in November 2027 asking Lawrence voters to decide whether to extend the sales tax beyond the initial 10 years.
CURRENT AFFORDABLE HOUSING SALES TAX
Tax rate is 0.05%
How does it affect consumers?
$0.50 collected per $1,000 in purchases
How much money is generated?
Approximately $1.25 million annually
What work does the money support?
100% of funds go toward affordable housing projects
PROPOSED AFFORDABLE HOUSING AND EMEREGNCY SHELTER SERVICES SALES TAX
Tax rate is 0.10%
How does it affect consumers?
$1.00 collected per $1,000 in purchases
How much money is generated?
Approximately $2.5 million annually
What work does the money support?
Half of funds go toward affordable housing projects and half toward emergency shelter facilities and related services for people experiencing homelessness.
Types of Affordable Housing Projects & Programs
- Provide and improve quality, availability and affordability of housing in Lawrence
- Invest in private/public partnerships for the provision of affordable housing
- Acquire land for future affordable housing units
Examples of Emergency Shelter Facilities & Related Services
- Immediate benefits such as food, laundry, transportation, storage, non- prescription medical supplies, case
management and outreach services - Homeless prevention services such as rent
stabilization funding, utility assistance, and assistance obtaining government identification cards and government benefits