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Posted on: July 27, 2022

SPOTLIGHT: When you ‘Shop Edmond’ your money stays in Edmond

Shop Edmond basic logoAs Edmond continues to grow, so do the myriad amenities to choose from.

A wide variety of shops. A broad range of services. An assortment of facilities and activities. A growing and diverse menu of dining options.

All of it combines to make living in Edmond convenient and desirable.

But what many may not understand is that a variety of attractions and options also help promote something very important.

Simply put: When you spend your money in Edmond, that money stays in Edmond.

“Sales tax is what funds our city,” said Kathy Panas, the City of Edmond Finance Director who oversees the building and managing of the City’s budget. “We do have significant revenue streams from other sources – like our utilities, licenses and permits and other sources – but when it comes to paying for the services and facilities in the City’s general fund budget, sales tax revenue is vital.”

Sales and use tax on goods purchased in Edmond regularly make up nearly 33 percent of the annual City of Edmond budget. That means every time you choose to shop at a local business, dine at a local restaurant or pay for a fun experience here in Edmond, you also are helping pay for the very services and amenities that make Edmond the growing community it is.

Even with the recent voter approval of a temporary .25 percent increase, Edmond’s sales tax rate of 8.5 percent is among the lowest in Oklahoma. Broken down, what it means is for every dollar spent in Edmond 8.5 cents is collected in sales tax.

Not every penny goes to Edmond, however. Only 4 percent of the sales tax returns to Edmond. The other 4.5 percent goes to the State of Oklahoma. But, that 4 cents on every dollar spent within the City of Edmond city limits make up most of the general fund revenues – approximately $64 million in fiscal year 2022 – and how those funds are used is closely monitored and focused exclusively on providing the quality of life residents have come to expect.

Specifically, the sales tax funds that go to the City of Edmond breaks down like this:

  • Two cents on every dollar spent in Edmond goes to the City’s General Fund. Of those funds, 38.6 percent goes to the Police Department, 30 percent goes to the Fire Department, and the final 33.2 percent is used to finance general city services including street maintenance and construction, municipal court, parks and recreation, senior citizens center, community impact support, emergency management, community image, planning and zoning, festival marketplace, building services, downtown community center, cemetery, City Council, and the historical society.
  • An additional one-fourth cent is dedicated to the Fire Department.
  • An additional one-eighth of a cent is dedicated to the Police Department.
  • An additional one-eighth of a cent is dedicated to the Parks and Recreation Department.
  • Three-fourths of a cent goes to the 2000 Capital Improvement Projects fund or CIP fund. Edmond voters approved this as a permanent sales tax to pay for large capital projects. Since its establishment in 2000, the CIP fund has contributed to many important construction projects and vital road improvements.
  • One-half cent goes to the 2017 CIP fund, another source for capital improvement projects. This is a repurposed sales tax approved by voters in 2016 and will be up for a renewal vote again in 2026.
  • The remaining one-fourth cent goes to the purchase and closing costs of land near Hafer Park. This is a temporary tax residents voted to approve in December 2021. That one-fourth cent remains in place until Dec. 31, 2022. The next day, the temporary tax expires, and the Edmond sales tax rate will drop back to 8.25 percent, the lowest rate among major metro areas in Oklahoma.

“Just like every municipality in Oklahoma, sales tax is a vital piece of the budget equation,” Panas said. “Edmond has a voter-approved sales tax rate that is among the lowest in the state. This sales tax revenue provides essential City services and contributes to the quality of life Edmond residents expect. Just like we think of many of our projects as an investment in our community and its future, shopping local is the way our residents can invest in Edmond as well.”

Learn more about how shopping in Edmond can make a difference

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