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Audit: Manhattan, Overland Park and Wichita largely spent guest-tax revenues appropriately but audits flag a few questionable transfers and collection risks
Summary
A Legislative Post Audit review found most guest-tax spending by Manhattan, Overland Park and Wichita appeared appropriate (2021–2023) but flagged Manhattan's $100,000 transfer to its general fund without clear documentation, Wichita's prior use of $16,000 for administrative fees (an ordinance change is in protest), and KDOR collection practices that may have resulted in misalignment with city charters.
Legislative Post Audit staff reported to the Tax Committee that Manhattan, Overland Park and Wichita generally spent transient guest tax revenue appropriately for tourism promotion, bond repayment and tourism facility operations during 2021–2023, but auditors identified a few instances requiring attention.
"Most of Manhattan, Overland Park, and Wichita's spending of transient guest tax revenue appeared to be appropriate," said Macy Smith of Legislative Post Audit, while noting exceptions in Manhattan and Wichita.
Macy said the audit found Manhattan transferred $100,000 of transient guest tax revenue to its general fund in 2023; the city commission approved the transfer under a broad…
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