The City of Shawnee has a three cent (3.50%) permanent sales tax and a one-half cent (0.50%) temporary sales tax, combining to a total of three and one-half cents (4.00%) of every taxable dollar spent within City limits.
Sales taxes are voted on by the electors of the City of Shawnee and allocated based on ordinance in the following ways:
Permanent Sales Tax (3.50%):
1. Two percent (2.00%) are allocated to the General Fund for core City services.
2. One-sixteenth of one percent (0.0625%) are allocated to the Police Special Tax Fund to be used for salaries, equipping, training and hiring of Shawnee Police Officers in excess of the 1998-99 funding levels.
3. One-sixteenth of one percent (0.0625%) are allocated to the Fire Special Tax Fund to be used for salaries, equipping, training and hiring of Shawnee Firefighters in excess of the 1998-99 funding levels.
4. Seven-eights of one percent (0.875%) are allocated among various funds to be used for capital improvements, economic development, or the payment of debt service and other requirements that may be required by any document securing the payments of bonds issued by the City or a public trust of which the City is a beneficiary.
5. Implemented in April 2023, One-half percent (0.50%) has been pledged to be the revenue source for the $65.65 million loan the City received from the Oklahoma Water Resources Board (OWRB) for the construction of the City's new wastewater treatment plant. Under that condition, the City must first utilize the revenue to satisfy the annual debt service obligations to OWRB. The loan is estimated to continue through 2053. Thereafter, the funding can be used for other capital projects the City may need to undertake.
Temporary Sales Tax (0.50%) through 2028, for capital expenditures:
1. One eighth of one percent (0.125%) are allocated for police, fire, and emergency management capital expenditures.
2. One eighth of one percent (0.125%) are allocated street and road project capital expenditures.
3. One quarter of one percent (0.25%) are allocated for public parks and public facilities capital expenditures.
The sales tax rate for the City of Shawnee is 9.995% of each dollar. The State of Oklahoma receives 4.5%, the City of Shawnee receives 4.00% and Pottawatomie County receives the remaining 1.495%.
The City of Shawnee utilizes fund accounting in accordance with the Governmental Accounting Standards Board (GASB) Statement No. 54. The City's resources are tracked using the general fund, special revenue funds, capital projects funds, debt service funds, proprietary funds, and internal service funds based on purpose. Each fund is a separate accounting and financial reporting entity with a discrete chart of accounts including assets, liabilities, fund balance, revenues and expenditures. The number of funds established for the City varies based on legal requirements and management's judgment for expeditious and sound financial reporting. See the City's most recent comprehensive annual financial report for additional information.
The City of Shawnee operates on a fiscal year of July 1 to June 30, matching the State of Oklahoma's fiscal operating year.
