Chuck Uerling, president of Uerling's Furniture and Carpeting, was certain some people were coming in to take advantage of the current sales tax of 5.5 percent, particularly since his store advertised the idea. When the half-cent tax is added, it will go up to 6 cents on every dollar. One fear may be that the tax will encourage people to shop in Grand Island or Kearney because those cities only have a 1 percent tax while Hastings will be 1.5 percent. Also, he said, both of the neighboring cities are contemplating sales tax increases for their own civic projects. But, she said, projections can vary greatly depending on economic conditions.
Sales tax is an elastic source of revenue.
By ordinance, the new tax will end when the police station and its bonds are paid for, expected to be in four to six years. Precise predictions are difficult because of the many variables, Bramblett said. The bid letting for the police station project is expected to take place in July. Construction should begin in the fall and finish a year later. The current 1 percent sales tax was created to reduce the city's property tax requests and it appears to have done so.