DUNCAN – Duncan’s sales tax for economic development projects will remain in place for another five years if voters decide to renew it.
With little discussion, the Duncan City Council voted unanimously March 26 to extend the city’s half-cent sales tax until July 31, 2029, and call for a special election on the issue. The tax was originally set to expire July 31 of this year.
The sales tax question will appear on the June 18 ballot, along with a proposal to renew Public Service Co. of Oklahoma’s franchise with the city for another 25 years.
Voters originally approved a half-cent sales tax for economic development in 1994 and have renewed it five times since then, the Duncan Area Economic Foundation said in a February 2023 report. The sales tax is the foundation’s primary source of funding.
“The full half-cent tax was dedicated to DAEDF activities in the two decades from 1994 to 2014,” the report’s authors said. “Beginning in 2014, the tax proceeds were split equally between DAEDF and the city, with each receiving one-fourth cent. The City of Duncan uses the proceeds to fund infrastructure improvements which may include improvements to city streets, water conservation projects, and electric utility distribution.”
The sales tax generated about $29.75 million altogether for DAEDF through 2014, when the foundation started splitting proceeds from the tax with the city, according to the report. Sales tax revenues since 2015 have averaged about $990,570 a year.
The tax generated about $1.03 million in 2022, the last year for which data was available.