Two proposals could send sales tax in Noble to 10.25 percent

NOBLE, Okla. (KOKH) — It's a story of two "what-ifs" in Noble.

Two sales tax proposals that separately, have little to do with each other. But together, tell the story of what would be a major bump in what people in this small town pay for every item.

"We need the money so desperately," said Noble city manager Bob Wade.

Wade says the city's proposed half-cent sales tax, up for a vote August 23, would help keep those in Noble safe and lay the financial ground work for long-term growth. Wade says initial projections show that the city could raise $15,000 a month from the new tax.

"That kind of money would significantly help fund the kind of equipment that we need for police, fire and ambulance service," Wade said.

The city hasn't been able to purchase any new firetrucks since Wade started 15 years ago and can't fully equip police, Wade said. The money would be used solely for equipment, not salaries, according to Wade.

Police officers have one body cam per shift and not everyone is assigned a Taser because they don't have enough for everyone, Wade said.

Getting bunker gear for firefighters is a challenge because of the cost.

Protecting Noble's extensive rural countryside is also a challenge for a cash-strapped fire department, where a firetruck easily costs $200,000 and more; brush pumpers upwards of $150,000. For this town of 7,000, paying for one would take a major chunk of the city's already small budget.

But looming is another sales tax proposal in November, a one-cent sales tax for education. Getting voters to approve two sales tax proposals on the same ballot is a tough sell, Wade said. It's why the city moved its vote to August.

"If the total sales tax is going to be near ten percent anyway, why not give our people the shot of helping the city before helping the state?" Wade said.

A total tax of more than 10 percent?

"We realize that's putting pressure on the sales tax, but that's the model the state gives us."

Noble's current tax of 8.75 percent is made up of a 4.5 percent from the state, another 4 percent is existing city tax and another 0.25 percent goes to the county.

If August's tax passes, it create a 9.25 percent tax rate. And if the one-cent sales tax in November also passes, Noble's new tax rate will be 10.25 percent. That rate would mean Noble, Oklahoma would tie Chicago for the highest sales tax rate in the country.

Making matters worse for Noble, a lucrative sales tax generator just out of reach, a new required public safety communications system that could come at any time, and a stifled sales tax down from the oil and gas downturn.

Noble's sales tax collections were down 10 percent from last year due to the trickle down of the oil and gas economy.

Poster from City of Noble in support of the tax.

Now a new threat to Noble's economy: a Walmart super center on the city's northernmost border, taking both grocery and gas sales away from Noble. Norman stands to make $300,000 a month in tax revenue from that store alone, Wade said.

"We're a little fearful of it."

Wade is also fearful of a change in Cleveland County's emergency radio system that could leave Noble's communication system obsolete. Newer technology implementation could happen "at any time" and Noble would be forced---with no way to pay for it---to upgrade its radio system.

With the public safety sales tax, that burden would be taken out of the city's general fund.

Noble is out of options for ways to raise money to pay for city services. Without passing bonds, the city wouldn't be able to afford ambulances.

With very little property tax revenue, sales tax is the key generator for money for the city.

"We are a non-Walmart city," Wade said. "We don't sell electricity, we are strapped to do what we can with the sales tax we have. We're going to ask our people to help really give us a big lift that would help public safety and take pressure off the general fund."