Property tax hike? New sales tax? Wichita discussing options as deficit looms (2025)

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Facing a deficit of several million dollars in coming years, Wichita elected officials are talking about the possibility of increasing or adding taxes.

Options could include a 1% city sales tax or a property tax rate increase, officials said during a recent city workshop.

Current estimates show the city expects a $3.8 million deficit in 2026. That increases to $10.8 million the following year. The estimated deficits would be caused mainly by cost increases, including staff wages, as well as expected lower interest earnings.

The city has yet to say if or what it could cut to balance the budget. Some council members offered the sales tax or mill levy increase to avoid reductions in city services.

The conversation comes at a time when property owners have been asking local and state government to cut property taxes as property valuations continue to rise — and at a time of uncertainty in prices for goods and services.

How much each of the options could cost for a family or business owner in Wichita looks drastically different.

The property tax increase could come from raising the levy by one mill, a suggestion brought by Council member Brandon Johnson, whose term is set to expire next year. He has unsuccessfully advocated for a mill levy increase multiple times.

“You know how expensive Starbucks is,” Johnson said. “If you get one or two coffees there, that’s pretty much the cost per year of raising the mill one or two.”

“I just want people to really think about that, it’s not a large investment in that sense,” he continued. “Yes, it is property tax, and that’s a conversation that is all over the place right now, but in real numbers, those are real numbers for you.”

A mill levy increase would be an additional $11.50 on a homeowner’s bill for every $100,000 of valuation. Wichita homeowners currently pay $377.38 to the city for every $100,000 of valuation on their home. That doesn’t include taxes from the state, school district and county governments.

The mill levy for 2025 is 32.816 for the city of Wichita, 28.701 for Sedgwick County, 31.387 for Wichita Public Schools, 1.5 mills for the state of Kansas and an additional 20 mills for the school district’s general fund.

Residential property owners who live in the Wichita school district pay a total of $1,315.27 for every $100,000 of valuation. Amounts for Wichita residents in other school districts would vary.

For commercial property owners, the property tax rate is more than double, at $25 for each mill levied by the city. Commercial properties pay $2859.28 in property taxes for every $100,000 of valuation; $820.40 of that goes to the city of Wichita.

A one-mill increase could generate around $5 million for the city, according to city finance director Mark Manning.

Adding a 1% sales tax in the city limits would generate much more revenue for the city, about $100 million a year, according to Manning.

Council member Dalton Glasscock suggested beginning a conversation on what a 1% sales tax would look like to pay for capital projects so that property owners aren’t the only ones footing the bill. The city has said it over-allocated for capital improvement projects for the coming years by about $25 million.

“How can we still seek revenue but make sure it’s in a more equitable way?” he said.

Adding a 1% sales tax in the city could cost tax payers much more money than raising the mill levy.

For a family of four in the city, with a combined income of $50,000, a 1% sales tax would be an estimated increase of $173 a year, according to adjusted Internal Revenue Service data.

On the other hand, Council member JV Johnston said, a sales tax would force suburban residents who commute to Wichita to share in the cost of city services.

“My concern is all these bedroom communities are using our services but not paying for any of it,” Johnston said. “They’re using our roads, a lot of times they’re using our libraries, our parks, not paying for any of it.”

A mill levy increase could be approved by a majority of the council during its budget process. A 1% sales tax increase would have to be approved by voters.

Considering election deadlines for this year, a referendum on a sales tax wouldn’t be able to happen in this year’s general election.

Wichita does not now have a city sales tax. It asked voters for a 1% tax in 2014 to pay for a new water supply and several city departments. Voters overwhelmingly rejected the proposal.

People who spend money in Sedgwick County do pay a 1% sales tax that goes toward infrastructure projects, which the city benefits from.

Sedgwick County has also discussed adding an eighth of a percent sales tax to fund its cultural art and recreation programming, which includes the Sedgwick County Zoo and Exploration Place. That’s in hopes of reducing the county property tax rate.

Wichita City Council members will continue discussing the budget, including how to address the projected deficit, at several of its meetings leading up to the budget vote later this summer.