Breaking down the numbers of the possible Fargo sales tax extensionFargo, ND (WDAY TV) - Fargo City Commissioners are taking steps to renew the half-cent infrastructure sales tax, and get it on the June ballot. The sales tax annually raises around $10 million for the city. But just how much is that costing you?
Fargo City Commissioners are taking steps to renew the half-cent infrastructure sales tax, and get it on the June ballot. The sales tax annually raises around $10 million for the city. But just how much is that costing you?
The US Department of Labor says that an average house hold is two and a half people with an income of around $63,000. Here's how the 1/2 cent Fargo sales tax breaks down on their budget:
Entertainment is the largest part of a families budget that would fall under Fargo's sales tax, at nearly $2,700. That gives $13.50 to Fargo. Eating out is close behind at $2,668, netting Fargo another $13.34 per year.
Furniture and clothing are the next biggest taxable expenditures both around $1,800. Combined that gets Fargo $18.40.
From there the categories get smaller but they add up to another roughly $2,200 in expenditures and $11.18 for Fargo in taxes. This brings the average annual sale tax total to $56.30 per family of two and a half.
Tracy McFarlane of the Village Family Services thinks that might even be a little high for Fargo, where the average income is lower, but she says the percentages paid cuts across economic lines.
Tracy McFarlane – Village Family Services: “Typically it averages out to be about the same. People do sometimes tend to spend what they make, but as far as percentages of different categories it is pretty even across the board.”
It's likely this summer Fargo residents will have the choice to keep or do away with this half cent tax.
Commissioners Piepkorn and Williams are expressing concern about how the money from the tax will be spent. The commission must make a final decision by April 12th to get it on the June ballot.