Wright County and city officials are currently doing the best they can to educate voters on a ballot initiative involving a local use tax set to appear on the April 6 ballot.
The City of Mountain Grove attempted to hold a public forum last Thursday on the issue, but all in attendance were primarily City and County officials.
The Wright County Federated Republican Women are next up as they are hosting a forum at 6 p.m. on Thursday, March 25.
Wright County Commissioners will provide a question and answer session after explaining what the “use tax” is.
The Wright County Federated Republican Women (WCFRW) say they are holding the event not to endorse it, but to educate and inform citizens on the issue.
According to material provided by the City of Mountain Grove, the use tax is “a sales tax imposed on the purchase of goods by Missouri residents from out-of-state vendors. The use tax is applied to the same type of products subject to traditional sales tax. The difference is where the goods are purchased and shipped. When individuals make purchases at retail stores in Missouri, they pay the sales tax that is applicable at that location. On the other hand, purchases by Missouri residents from out-of-state vendors that are shipped to Missouri are subject to a use tax. While the sales tax rate is based on the point of sale, the use tax rate is determined on the point of delivery.”
It goes on to say that “a use tax allows for the local sales tax rate to be applied to purchases of goods by Missouri residents and businesses from out-of-state vendors. This typically includes online purchases, catalog, and direct market sales from out-of-state vendors. The use tax applies to out-of-state purchases where no sales tax is currently being collected. A use tax does not apply if the purchase is from a Missouri retailer and is already subject to the local sales tax.”
This local use tax is then not a new tax, but instead is a new way to collect tax revenue that has already been supported by voters.
Likewise, with a use tax in place, if a local resident were to buy a purchase made by Missouri residents from a Missouri retailer, no use tax would be applied.
This use tax is only applied to purchases made by out-of-state vendors.
Where approval by voters could also benefit cities and the County are from companies like Amazon.
Amazon has announced that it will collect the Missouri tax, but those funds will not reach the cities or County without voter’s approval.
Another important distinction is that this passage will not double tax local purchases and a use tax is only implement for online purchases.
Currently, the proposed local use tax rate for Wright County is 1.875%
As of June 30 of last year, 67 counties in Missouri have a local use tax. This means voters in those counties approved the measure with a “Yes” vote on election day.
Without passage, local businesses would remain at a competitive disadvantage as local taxes are avoided by out-of-state vendors.
If voters approve the item, the use tax would go in effect on Oct. 1 of this year.
Here are the ballot items set to be voted on by county residents as they will be asked to vote “Yes” or “No” on the issue.
Wright County Proposition
“Shall the County of Wright impose a local use tax at the same rate as the total local sales tax rate, currently 1.875 percent (%), provided that if the local sales tax rate is reduced or raised by voter approval, the local use tax rate shall also be reduced or raised by the same action? A use tax return shall not be required to be filed by person whose purchases from out-of-state vendors do not in total exceed two thousand dollars in any calendar year.
The purpose of the proposal is to eliminate the current sales tax advantage that non-Missouri vendors have over Missouri vendors.” Yes or No
Norwood Proposition No. 2
“Shall the City of Norwood impose a local use tax at the same rate as the total local sales tax rate, currently 2.0%, provided that if the local sales tax rate is reduced or raised by voter approval, the local use tax rate shall also be reduced or raised by the same action? A use tax return shall not be required to be filed by persons whose purchases from out-of-state vendors do not in total exceed two thousand dollars in any calendar year.” Yes or No
Question No. 2 for Hartville
“Shall the City of Hartville, Missouri, impose a local use tax at the same rate as the total local sales tax rate, currently 2.5%, provided that if the local sales tax rate is reduced or raised by voter approval, the local use tax rate shall also be reduced or raised by the same action? A use tax return shall not be required to be filed by persons whose purchases from out-of-state vendors do not in total exceed two thousand ($2000.00) in any calendar year.
The purpose of the proposal is to eliminate the current sales tax advantage that non-Missouri vendors have over Missouri vendors.” Yes or No
City Use Tax for Mansfield
“Shall the City of Mansfield impose a local use tax at the same rate as the total local sales tax rate, currently 1.25 percent, provided that if the local sales tax is reduced or raised by voter approval, the local use tax rate shall also be reduced or raised by the same action? A use tax return shall not be required to be filed by persons whose purchases from out-of-state vendors do not in total exceed two thousand dollars in any calendar year.
The purpose of the proposal is to eliminate the current sales tax advantage that non-Missouri vendors have over Missouri vendors.” Yes or No
Question 1 for Mountain Grove
“Shall the City of Mountain Grove impose a local use tax at the same rate as the total local sales tax rate, currently three percent, provided that if the local sales tax rate is reduced or raised by voter approval, the local use tax rate shall also be reduced or raised by the same action? A use tax return shall not be required to be filed by persons whose purchases from out-of-state vendors do not in total exceed two thousand in any calendar year.
The purpose of the proposal is to eliminate the current sales tax advantage that non-Missouri vendors have over Missouri vendors.” Yes or No
