Topeka voters will get the final word on a new local tax aimed at affordable housing and homelessness.
On Tuesday, Oct. 20, the Topeka City Council approved putting a one-tenth-cent, special-use citywide sales tax on the ballot, WIBW 13 reported. The tax would raise about $4 million a year for the city's affordable housing trust fund and homeless services.
The details
KSNT reported the special election will be held March 2, 2027, by mail ballot. The election is expected to cost nearly $120,000.
If voters approve, the city would collect the 0.1% sales tax on all retailers starting July 1, 2027, according to KSNT. The tax would last 10 years. KSNT reported the tax would generate about $40 million over those 10 years.
Money would go to Topeka's existing affordable housing trust fund. The tax would also allow contributions to homeless programs, including outreach, support, transportation services and rental assistance, KSNT reported.
A second question on the ballot
WIBW reported voters will also decide whether to create a city auditor position that reports to the full City Council rather than only to the mayor and city manager.
What a housing trust fund does
A local housing trust fund is a pot of money a city uses to help pay for affordable housing. Depending on how a city sets it up, the money can go toward building new homes and apartments, repairing existing homes, closing financing gaps on projects, or helping renters and buyers.
The details of how Topeka's fund would spend the new money weren't spelled out in the coverage. Programs like this often lean on local builders, remodelers and nonprofits to do the actual work, whether that's new construction or repairs on older homes.
What it costs shoppers
A one-tenth-cent tax adds 10 cents to every $100 in taxable purchases. That's small at the register. For a contractor buying materials at Topeka retailers, it's a minor bump on a big order, but it adds up over a year of purchases.
A tool more cities are trying
Cities across the Midwest have been looking for steady local money to fill housing gaps, since federal and state dollars often don't cover the need. A dedicated sales tax is one tool. It gives a city a predictable revenue stream that can be pledged to projects over time, which can help developers and nonprofits line up financing.
The timeline
- Oct. 20, 2026: City Council approves the ballot question.
- March 2, 2027: Mail-ballot special election.
- July 1, 2027: Tax collection would begin if approved.
- Ten years: Length of the tax if it passes.
WIBW described its story as developing, and more details about how the money would be divided may come out before the vote.
Why it matters for contractors
About $4 million a year is real money in a city Topeka's size. If even part of that goes toward building or fixing homes, it could mean a steady stream of affordable housing work for local builders, remodelers and trades over the next decade.
That's not guaranteed. Voters still have to approve it, and some of the money is set aside for homeless services like outreach and rental assistance, not construction. Contractors who want a piece of the housing work should watch how the city plans to spend the trust fund money between now and March, and get to know the agencies and nonprofits that run local housing programs.
If it passes, the first dollars would start coming in after July 1, 2027.