Wichita’s largest suburb votes to approve a higher sales tax. Here’s why

Derby voters approved a sales tax increase expected to generate around $4 million to $5 million annually with the aim of alleviating property taxes while supporting public safety, streets, sidewalks, parks and trails.

The tax increase was approved by 55% of voters, according to Sedgwick County unofficial election results Tuesday night. The “1% Derby Difference sales tax” will replace the current half percent sales tax that expires on Dec. 31, 2024, according to the city’s website.

The new 1% sales tax would start on Jan. 1, 2025 and run through Dec. 31, 2034. Derby’s overall sales tax rate now is 8%, with most of that going to the state. The increase will push Derby’s overall sales tax rate to 8.5% in 2025.

“I’m excited for the City of Derby, I can’t help it,” Derby Mayor Randy White said in a phone call after the vote. “I’m excited that the citizens can see what good things we can do with this 1% sales tax.”

Why the 1% sales tax?

In a survey earlier this year, a majority of Derby residents said they prefer sales tax over property taxes.

Sales tax dollars would go to public safety equipment, capital improvements and maintenance, and improvements to streets, sidewalks, parks and trails.

“When people talk about the quality of life in Derby, a lot of that starts with our parks,” White said. ”During my nine-year term as mayor, I have happened to be in the driver seat when we opened three new parks in Derby.”

Of the sales tax increase, 45% would go to streets and sidewalks, 45% would go to parks and trails and 10% would go to public safety equipment and capital improvements.

“The city wants to be a good steward of taxpayer dollars and the proposed sales tax will aid in stabilizing the property tax while also enhancing the quality of life and services in Derby,” a Derby Difference flyer said.

White said the sales tax increase is result of what Derby residents asked for.

“I think we have done a really good job of educating people to what the facts are,” White said.

Outside help

Derby, with a population just under 26,000, is Wichita’s largest suburb, according to Sedgwick County demographics.

Roughly 6,000 non-residents commute to Derby for work, along with people who come for medical services, dining and shopping, White said.

Nearly 30% of sales tax revenues for the city come from people who live outside of Derby and choose to shop in Derby, the city said.

The Derby City Council earlier this year showed interest in shifting more funding to sales tax from property tax, the Derby Informer newspaper reported.

“The City understands the property tax burden that residents are feeling, especially with the large increases in property values being seen in recent years and wants to ease that burden where possible,” the city said.

Derby has had a local sales tax since 2003. The first sales tax was half a percent from 2003-2009 that built the Rock River Rapids Aquatic Park. The second was also a half percent from 2010-2014 that was used to build the Derby Public library, a Derby City Council agenda item report showed.

The current half percent sales tax has helped pay for Derby Public Library operations, Derby Fire and Rescue operations and major enhancements to the park system in the city.

When the current half percent sales tax first started, it was generating $2 million a year; now it generates $4.2 million.

“You can just tell how massive sales tax revenue is,” White said. “In nine years we have doubled what it originally started out at.”

The additional $4 million to 5 million in new revenue would balloon funds to $8 to 10 million annually, the city said.

“This will be a 10-year plan... and it’s always a good opportunity to re-look at things to see where you’re at and where you want to go,” White said. “Maybe in 10 years they say ‘hey, we’re in a great position, we no longer need it.’ “