Patrick Bonnot, Missouri Municipal League legislative staff associate, sent me some cool infor on the six taxes cities are allowed to propose to voters.

They fund: General Revenue, Capital Improvements, Transportation, Storm Water/Parks, Fire Protection and Economic.

"A majority of the voters must approve each of these taxes prior to their imposition. The Missouri statutes also dictate the rate at which these taxes may be imposed and the use of funds generated from their imposition. In addition, the statues require that specific language be included on the ballot, as detailed in the respective statute. All the above sales taxes are to be applied to the receipts from the sale at retail of all tangible personal property or taxable services at retail within any city adopting such a tax, as defined in Chapter 144 RSMo.

General Revenue ˆ The City Sales Tax Act, Sections 94.500-94.550 RSMo, details the imposition of the General Revenue municipal sales tax. The tax may be imposed at a rate of one-half, seven-eighths or one percent and may be used for any municipal purpose.

Capital Improvements ˆ Section 94.577 RSMo, covers the capital improvements sales tax. The tax may be imposed at a rate of one-eighth, one-fourth, three-eighths or one-half of one percent. The funds generated under this tax are to be deposited in a special trust fund. This fund is to be used solely for capital improvements. The funds also may be used to repay bonds as long as the bonds are used for capital improvements, and use of the tax to repay the bonds was mentioned in the ballot language. Legislation was adopted by the General Assembly in 2001 adding Section 94.575 to the statutes. This legislation clarifies the definition of capital assets to include any assets with a useful lifetime of more than two years, including computer software.

Transportation ˆ Sections 94.700-94.755 RSMo cover the transportation tax for all Missouri Municipalities except St. Louis and Kansas City. The transportation sales tax may not exceed one-half of one percent and is to be used solely for transportation purposes. As with the capital improvements sales tax, revenue from the transportation tax also may be used to retire bonds used for transportation purposes, as long as such use is mentioned in the ballot language. The statutes define transportation purposes to include public mass transportation systems; the construction, repair and maintenance of streets, bridges and airports; and the acquisition of lands and rights-of-way for these purposes.

Storm Water/Parks ˆ Sections 644.032-644.033 RSMo detail the storm water/parks sales tax. The tax may be used for storm water control, parks or both, provided the particular use of the tax is included in the ballot language. The tax may not exceed one-half percent.

Fire Protection ˆ Section 321.242 RSMo grants municipalities the power to enact a sales tax of up to one-fourth of one percent on all retail sales. Funds from the tax must be deposited in a special trust fund and are to be used solely for the operation of the municipal fire department.

Economic Development ˆ Section 67.1305 RSMo. was enacted in 2005 by the Missouri General Assembly and authorizes municipalities to enact a sales tax of not more than one-half of one percent Revenue generated by the tax cannot be used for retail development projects, except for the redevelopment of downtown areas and historic districts. At least twenty percent of the revenue generated by the tax shall be used solely for projects directly related to long-term economic development preparation, including, but not limited to, the following:

(a) Acquisition of land;

(b) Installation of infrastructure for industrial or business parks;

(c) Improvement of water and wastewater treatment capacity;

(d) Extension of streets;

(e) Public facilities directly related to economic development and job creation; and

(f) Providing matching dollars for state or federal grants relating to such long-term projects.

(3) The remaining revenue generated by the tax authorized in this section may be used for, but shall not be limited to, the following:

(a) Marketing;

(b) Providing grants and loans to companies for job training, equipment acquisition, site development, and infrastructures;

(c) Training programs to prepare workers for advanced technologies and high skill jobs;

(d) Legal and accounting expenses directly associated with the economic development planning and preparation process; and

(e) Developing value-added and export opportunities for Missouri agricultural products"