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City of Manhattan News

Posted on: October 2, 2020

City Economic Recovery and Relief Sales Tax Question on the Ballot

map sales tax rates

A 10-year special sales tax question of 0.5% will be on the November 3, 2020 ballot for Manhattan. If the sales tax is passed by Manhattan voters, it will go into effect January 1, 2023. This date would coincide with the expiration of a 10-year 0.5% Riley County Sales Tax for roads, bridges and economic development that was passed in 2012. Upon expiration of the Riley County sales tax on December 31, 2022, and if the City sales tax passes this November, the sales tax rate in Riley County would remain at 8.95% and the sales tax rate in Manhattan City Limits within Pottawatomie County would increase to 9.45%

Since Manhattan city limits lie in Riley and Pottawatomie Counties, a city-wide tax, instead of a county-wide tax, would allow for the tax to be collected in all portions of Manhattan. This includes the portion east of Tuttle Creek Boulevard, increasing annual revenues from $3 million to an estimated $6.5 million.

Sales tax proceeds would be used to stimulate recovery from the COVID-19 pandemic and reduce the ad valorem (assessed by value) property tax burden on City taxpayers.

The funds would be dedicated to the following purposes based upon specified language defined in the ballot question:

  • 70% of the funds would pay for outstanding city debt and the costs related to public infrastructure
  • 20% of the funds shall pay for job creation, recruitment or retention initiatives; and 
  • 10% of the funds shall pay for workforce housing initiatives.

For more information about the recovery sales tax, visit the city's website: 

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