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Junction City Main Street seeks sales-tax exemption to expand downtown reinvestment
Summary
Junction City Main Street told the tax committee House Bill 22-34 would free an estimated $8,000 a year in taxes for a small nonprofit to reinvest in façade grants, alley beautification and entrepreneur programs; the Department of Revenue estimated a modest state revenue loss (~$6,500 in FY2026).
House Bill 22-34 would exempt purchases by Junction City Main Street Inc., a nonprofit dedicated to downtown revitalization, witnesses told the House Committee on Taxation.
Terry Butler, board president of Junction City Main Street and mayor of Junction City, said the organization operates on a lean annual budget of about $151,000 and currently pays around $8,000 per year in sales taxes. Butler said exempting the nonprofit would allow direct reinvestment into façade matching grants, wayfinding signage and other safety- and investment-focused projects that leverage additional private dollars.
Jordan McCann, executive director, described local incentive work (neighborhood revitalization programs, HEAL grants, CDBG and other assistance) and noted that paying sales tax on grant-funded projects reduces the effective value of external funding. McCann said the group has worked to convert long-vacant buildings into active businesses and runs entrepreneur pipelines including a Main Street market and an entrepreneurship class.
Kathleen Smith of the Department of Revenue reported that a prior estimate put the fiscal impact of the exemption at about $6,500 in fiscal year 2026 (roughly $5,300 general fund, $1,200 highway fund), and the group confirmed that the figure remains approximately correct.
The committee closed the hearing after proponents finished; no opponents or neutral witnesses appeared on the record.
