Special Purpose Tax explained

Regarding the “Our View” published in the April 6, 2017 edition of the IR on the opinion page, anyone who thinks the “sales tax” might continue indefinitely is in need of a refresher course. The “sales tax” is in fact a Special Purpose Tax and by definition is put in place after approval by the voters to raise monies for a “Special Purpose”, in this case the remodeling and replacement of the hospital. Once the funds have been raised to the maximum amount of $16.4 million for the project, the Special Purpose tax goes away. When that happens it is a function of the County Commissioners to declare the monies raised, the tax no longer needed and thus dissolved.

Capital equipment purchases and replacement have always been part of the hospital’s operating budget. In the past the board has always strived to assure that the county funds allocated to the hospital annually are earmarked for part of the equipment purchase and upgrades. Going forward, the funds derived from the Hospital District mill levy will be part of the overall budget and capital equipment purchases will continue to come from the annual budget. Those funds along with grants, loans, leases, etc. will continue to fund equipment purchases much as in the past. The Special Purpose Tax was not intended for, nor will it be used for that purpose.