Old Town Businesses Push For Sales Tax Over Paid Parking In Wichita

In response to the City of Wichita’s plan to implement paid parking in the downtown area, businesses in the Old Town district have submitted a petition proposing an alternative solution a 2% sales tax increase within Old Town to maintain free parking for customers and employees. ​

Background on Wichita’s Paid Parking Initiative

The Wichita City Council has been developing a comprehensive downtown parking strategy to address infrastructure maintenance and operational costs.

The proposed plan includes installing parking meters with rates set at $1 per hour, $5 daily for surface lots, and $10 daily for covered lots.

This initiative aims to generate revenue for the upkeep of parking facilities and enhance the overall parking experience in the downtown area.

Old Town’s Alternative Proposal: Community Improvement District (CID)

To counter the paid parking plan, Old Town property owners have proposed establishing a Community Improvement District (CID) that would levy an additional 2% sales tax within the district.

The revenue from this tax would be allocated to fund parking operations, maintenance, security, and enforcement of time limits for both on-street and off-street parking in public lots and structures.

Petition Details and Support

The petition, submitted on February 13, 2025, has garnered significant support from Old Town property owners:​

MetricPercentage
Property Owners by Land Area77.9%
Property Owners by Assessed Value79.2%

These figures surpass the Kansas state law requirement, which mandates that at least 55% of property owners, both by land area and assessed value, must sign the petition for it to be considered valid. ​

City Council Considerations and Policy Waiver

Despite meeting state requirements, the petition faces a hurdle due to a city policy that requires 100% agreement among property owners within the proposed CID.

To proceed, the Wichita City Council would need to grant a waiver of this local policy. The Council is scheduled to vote on setting a public hearing for April 1, 2025, to deliberate on the establishment of the CID and the proposed sales tax increase. ​

Concerns Among Business Owners

While many Old Town business owners support the CID proposal to avoid paid parking, some express reservations about both options:​

  • Customer Deterrence: There is concern that paid parking could discourage customers from visiting Old Town establishments.​
  • Employee Impact: Business owners worry about the financial burden on employees who would have to pay for parking.​
  • Sales Tax Implications: Some proprietors are apprehensive about the potential negative effects of a 2% sales tax increase on sales and customer satisfaction.​

Nabil Bacha, owner of YO-B, encapsulated this sentiment, stating, “They’re asking us which better evil to choose. Are we choosing to have our sales tax increase by 2%, or we have the customer pay for parking. Well, both of them are not good for our business.”

The Wichita City Council’s upcoming decision will determine whether the CID proposal advances to a public hearing. If approved, the additional 2% sales tax could be implemented, allowing Old Town to maintain free parking.

Conversely, if the proposal is rejected, the city may proceed with the installation of parking meters as part of the broader downtown parking plan.​

The debate over parking solutions in Old Town Wichita highlights the challenges cities face in balancing infrastructure funding with the needs of local businesses and patrons.

The outcome of this proposal will significantly impact the district’s economic landscape and the accessibility of its amenities.

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