42.9 F
Cottonwood

Sales tax increase may hit poorest hardest

Published:

In August, the Cottonwood City Council will vote on a contentious issue — to raise the city’s sales tax by 0.5 percent.

Raising the city’s sales tax is with the intent to use the money to remedy holes in the coming year’s budget, refill the town’s reserves, pay down pension liabilities and repair roads.

Council voted 4-3 on June 6 to move forward on a sales-tax vote in August.

During many of its meetings, council considered the impact that raising the sales tax would have on Cottonwood residents, especially senior and lowincome residents.

- Advertisement -

For those low-income residents, a small increase in the sales tax could be a financial burden.

“I’m on a fixed income. I get disability,” said Cottonwood resident Charlie Walker. “For many people like myself, any increase is going to have an impact.”

Walker is a volunteer at the Old Town Mission. In exchange for his labor, he receives free food.

“It’s a good way to supplement your grocery bill,” Walker said.

Other people who receive their meals at the Mission perceive a higher sales tax as potentially harmful.

“It’s difficult enough,” said Carol Johnson, one of the Mission’s frequent clients. “If it’s coming out of my check to pay for food and utilities, I’m going in my pocket pinching.”

If the money raised from the proposed sales tax is used to pay for road improvements, some of Cottonwood’s low-income residents see it as a worthy cause.

“If you tear your car up on the road, that’s more cost to you for repairs,” said Fred Darden, a senior citizen who frequently visits the Mission.

Darden said he realizes the city needs money to pay for its public services, but he wishes the Cottonwood City Council could find other ways to pay for its expenses without taking money from its low income residents.

“But what about people like me on a fixed income?” Darden said.

With the help of the Mission and other local nonprofits, food is not a primary expense for most of Cottonwood’s lowincome residents. However, some residents voiced concern over the cost of gas, insurance, cigarettes and medications, which could be impacted by a sales tax increase.

“Medical care is a major cost,” said Deborah, a Cottonwood resident who leads prayers at the Mission, who declined to give her last name. “We’ve got a lot of sick people who can’t afford their medicine. When you’re paying that small amount per dollar, but you’re paying thousands of dollars, all these things are a big deal.”

Kellie Wilson, executive director of the Old Town Mission, said that the support from Cottonwood’s nonprofits should be able to work with Cottonwood’s low-income community members, even if individuals have to pay a little more due to a higher sales taxes.

Most of the facility’s food comes from donations from local grocery stores. As a result, if there is a sales tax increase, the Mission’s purchases will be somewhat insulated.

And with the Mission receiving grants for its operations from the city’s budget, Wilson is sympathetic to the need for the Cottonwood City Council to keep its finances in order.

Wilson said he hopes that the nonprofits in Cottonwood will be able to continue to help the low-income residents if a raise to the sales tax is passed.

“I think a lot of times the people that truly need the help are working, and so that brings this whole aspect of ‘I don’t want to have to go to get help.’ They feel like they shouldn’t have to,” Wilson said. “I think that’s where the awareness needs to come in from the charities and from the Mission. Showing people that it’s not a bad thing to help you get over this.”

Jon Hecht can be reached at 634-8551 or email jhecht@larsonnewspapers.com

Jon Hecht

Related Stories

Around the Valley