City Calls Special Excise Tax Election
The City of Seminole has called a July election for the approval of a 1/8 cent excise tax to fund construction of the city’s new sewer plant.
A special meeting of the Seminole City Council was held Tuesday evening to discuss options for paying for the plant, which has ended up costing twice as much as initially estimated. One of the options on the table was a proposal to put the tax hike before voters on July 8, which was met with council approval.
The ballot will read as follows: “Shall Ordinance No. 1307 of the City of Seminole, Oklahoma, being an Ordinance amending the “City of Seminole Sales Tax Ordinance”, which will increase the excise tax levy in said Ordinance by oneeighth of one percent (%) upon the gross proceeds or gross receipts derived from all sales taxable under the Sales Tax Law of Oklahoma beginning on October 1, 2025; providing that the proceeds of such additional excise tax shall be used solely for providing revenues for paying debt service on indebtedness or refinancing indebtedness incurred on behalf of the City by the Seminole Municipal Authority for the purpose of constructing a new wastewater treatment plant for the City of Seminole, Oklahoma; providing that said tax shall no longer be levied or collected when said indebtedness is retired, or October 1, 2066, whichever shall be earlier; making provisions cumulative; and providing severability of provisions, be approved?”
If approved, the excise tax will go into effect Oct. 1 and remain in effect for 40 years, or until the debt is paid in full.
In November 2021, Seminole voters approved the extension of a half-cent sales tax to pay for a $20 million plant, but since then construction costs have risen to $40 million.
The city is also eyeing staff reductions and a $5 per month sewer rate increase to fund the plant’s construction.