Can Washburn University Forego Sales Tax Revenues?
December 2, 2005
Attorney
General Phill Kline
120 SW 10th Ave., 2nd Floor
Topeka KS 66612
Dear Mr. Kline:
On November 11, 2005, the Washburn University Board of Regents passed a resolution in regards to supporting the Heartland Park Topeka expansion project.
“It was moved and seconded to participate in the project by pledging the .65% county-wide sales tax for support of the project, foregoing receipt of those revenues from sales in the defined premises for the life of the Star Bond. Motion passed.”
The minutes of that meeting, at http://www.washburn.edu/admin/bor/111105REGMIN.html, indicated that the county, city and state were also supporting this project by pledging their respective sales tax revenues from the premises to pay the bonded indebtedness until the Star Bonds are retired.
I am curious as to where these public funded entities receive the authority to pledge sales tax receipts collected for their benefit and what limitations are placed on that authority. Unless I am misunderstanding something in this equation, to allow these publicly funded entities to pledge tax dollars (collected on their behalf to support a public purpose) to a private entity seems equivalent to gambling.
I would appreciate any information you can provide regarding the source of the authority to pledge sales tax receipts to any purpose other than for the specific purpose for which they are being collected. Thank-you for your consideration of this request.
Sincerely,
Mary Lou Herring