PITTSBURG, Kan. — At Beitzinger Hardware, 722 N. Broadway, the tax increase that some legislators want for Kansas is a hard sell right now.

“This country is still in a recession. Even though some people think it is out, it’s not,” said John Beitzinger, owner.

While he spoke, members of the Kansas House in Topeka were trying to patch holes blown in the state’s budget by that recession. And one such patch, already approved last week in the Kansas Senate and supported by Gov. Mark Parkinson, calls for boosting the state’s sales tax from 5.3 cents to 6.3 cents.

The sales tax proposal was failing late Monday night in the House, jeopardizing a bipartisan budget already approved by legislators.

The initial vote was 62-59 against the bill, but the House had not closed its votes and was waiting for absent members to return. Results often change during voting, even on major issues.

The $314 million raised by the sales tax during the next fiscal year would balance a $13.6 billion state budget that cleared the Legislature on Monday and was sent to Parkinson.

But the budget won’t balance unless legislators increase taxes.

Sen. Bob Marshall, R-Fort Scott, and Sen. Dwayne Umbarger, R-Thayer, voted for the sales tax increase last week.

The current combined city, county and state sales tax in Pittsburg is 7.3 percent, which would be boosted to 8.3 percent if the increase were enacted. In Galena, Baxter Springs and Columbus, the combined sales tax of 7.8 percent would jump to 8.8 percent.

“It’s hard to say we’ve got another penny as far as I am concerned,” said Beitzinger.

Border wars

The problem is compounded for communities such as Pittsburg, on the border with other retail hubs, in his case Joplin, Mo. The combined sales tax in Joplin is 7.825 percent in the Jasper County portion of the city and 7.725 percent in the Newton County portion.

Beitzinger worries that pushing up the Kansas sales tax would drive customers to Missouri.

“It is not going to help,” he said. “On little items, probably no one will notice. On big items, it will make a difference.”

Beitzinger, who lives in Kansas, not far from the Missouri line, understands the lure of lower taxes. He buys his fuel in Asbury, Mo., because gas taxes are cheaper in Missouri. He said he saves 12 to 13 cents a gallon. On a 20-gallon tank, that’s $2.40 to $2.60 every time he fills up.

Paying for services

Just two blocks away, Patrick O’Bryan, owner of Little’s, 515 N. Broadway, thinks the sales tax increase may be needed.

“We have to get all these services we want paid for,” said O’Bryan. “In this country, we all want these services — education, nice roads, social services. There is no way to fund it.”

Pittsburg is a college town, he noted, and failure to adequately fund education would have long-term ramifications for the economy.

Besides, he thinks many of his customers would remain loyal and not jump across the state line just to save a few cents on their purchases

But O’Bryan, who also is Pittsburg’s mayor, has another concern. The city is looking at ways to pay for needed street work, and while no amount has been discussed, he thinks the city could end up proposing a sales tax to pay for it.

He’s not sure what raising the state sales tax would do locally, but he does think the state has dug far enough.

“They have cut, cut, cut,” O’Bryan said. “There really is no place to cut.”

But Beitzinger thinks more needs to be done to reduce spending before increasing taxes.

“The first thing they have to learn to tell people is ‘no,’” he said. “That’s the first word your parents taught you.”

Jack Dent, at O’Malley Implement Co., 1076 S. U.S. Highway 69, said his customers consider the sales tax rate when choosing where to shop.

“It always has been a factor,” Dent said. “People do look at that when you get into bigger ticket items, which we sell.”

Still, he said, the Legislature is in a difficult situation.

“The state is going to have to increase income,” Dent said. “They are going to have to get it from somebody. We don’t have a choice.”

But, he added, “Higher taxes tend to drive down business.”

Resigned to it

Beth Powell, owner of Modern Jewelry in Baxter Springs, said she is resigned to the idea of a state sales tax increase.

“I really don’t think there’s anything we can do about it,” said Powell, a former member of the Baxter Springs City Council. “They’re doing the best they can. Getting upset about it’s not going to do any good.”

Heidi Cottrell, co-manager of Cottrell’s 66 Express convenience store in Baxter Springs, said the business relies on good service to keep loyal customers.

“I don’t think it will hurt our business,” Cottrell said of a sales tax increase. “It’s tough in the economy all over. If they like us, they’ll keep coming back.”

Shoppers at the Dollar General store in Baxter Springs said a higher sales tax in Kansas could prompt them to cross the state line.

“I’ll go wherever it’s the cheapest,” said Renna Crossland, of rural Columbus.

Brenda Bunney, also of rural Columbus, said she would go wherever she could save money when shopping.

“That’s too high,” she said when told that the sales tax could increase to 8.8 percent in Baxter Springs. “They’re already taxing us to death. We’re still struggling with prices as it is.”

Leverage

A coalition of Democrats and moderate Republicans on Monday was debating funding sources for the budget, including the sales tax increase. Among the issues to be addressed are a bill that would allow racinos to keep more revenue, and reduce the minimum investment required by the manager of a state-owned casino in Crawford or Cherokee counties. A racino is a combined racetrack and casino.

State Rep. Doug Gatewood, D-Columbus, said he has concerns with a 1-cent sales tax proposal since he represents a county that shares a border with Missouri and Oklahoma. Officials in Miami, Okla., have proposed an increase of 0.65 percent in the city sales tax for street work, which would take the combined state and local sales tax rate to 9.5 cents.

Gatewood said cuts have been addressed, and now new revenue sources must be found.

“We’re going to have to see a revenue increase,” he said. “The question is how much and where does it come from.”

State Rep. Bob Grant, D-Cherokee, revealed the strategy of the Southeast Kansas House members.

“I’ll probably vote for it,” Grant said. “We may use this as leverage to get a vote on the gaming bill.”

The Associated Press contributed to this report.





Tough words



Kansas Gov. Mark Parkinson on Monday criticized a remark by the president of the Kansas Chamber of Commerce, who said the Legislature has “catered to the needs of those at the government trough” by considering a sales tax increase to prevent further budget cuts.

“It is heartbreaking to think that somebody would equate the disabled, the elderly, schoolchildren, veterans and law enforcement to pigs at a trough,” Parkinson replied.