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Cape Girardeau opts out of sales tax holidayWednesday, June 3, 2009On Monday the Cape Girardeau City Council voted unanimously to opt out of a statewide sales tax holiday during the first weekend in August for the first time since the statute was enacted in 2005. Low operating reserves in the city budget led the council to opt out of the tax holiday and maintain the local 2.75 percent sales tax. The decision is projected to increase city revenue by between $37,444 and $71,088, according to a May 18 city council letter from city finance director, John Richbourg, and interim city manager, Ken Eftink. Cape Girardeau Mayor Jay Knudtson said it is clear that city revenue is down. "We needed to do the responsible thing on behalf of our citizens," Knudtson said. The ordinance passed by the city council will not affect the exemption from the state sales tax during the first weekend of August. Buyers will still benefit from a 66 percent tax decrease. Richbourg said he did not believe opting out of the holiday would compel shoppers to avoid spending their money in Cape Girardeau. Cape Girardeau Target manager Tom Prendergast sees a potential drawback in the decision. "I am a little bit concerned because the tax-free holiday always generates a lot of traffic into the Cape Girardeau area," he said. "We can anticipate a more normal business weekend as opposed to a holiday weekend." Knudtson said he was not personally notified by one business owner about concerns related to opting out of the tax holiday. Cape Girardeau Chamber of Commerce president John Mehner said a small number of businesses have expressed concerns that customers will go elsewhere, particularly when a business has stores in multiple locations. "There was no overwhelming response in either direction," Mehner said. He said he understands the reasons for the decision made by the city council and that next year the situation can be reanalyzed if necessary. Cape Girardeau is unlikely to be the only city in the region to opt out of the tax holiday. Scott City Mayor Tim Porch said that, although it has not been discussed formally, he will probably recommend that Scott City also opt out. "It's an extremely rough time for all of these municipalities," Porch said. Jackson has chosen to continue the local sales tax exemption during the tax holiday. Brian Gerau, executive director of the Jackson Chamber of Commerce, agrees Cape Girardeau City Council made the right decision for the city under the circumstances. "They made the right call," Gerau said, but he sees the decision as a potential motivation for buyers to search for alternative shopping destinations in which the local sales tax will be dropped. "Tax money is tax money, and in this economy every dime counts," he said. Comments  Note: The nature of the Internet makes it impractical for our staff to review every comment. If you feel that a comment is offensive, please Login or Create an account first, and then you will be able to flag a comment as objectionable. Please also note that those who post comments on semissourian.com may do so using a screen name, which may or may not reflect a website user's actual name. Readers should be careful not to assign comments to real people who may have names similar to screen names. Refrain from obscenity in your comments, and to keep discussions civil, don't say anything in a way your grandmother would be ashamed to read.
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"We needed to do the responsible thing on behalf of our citizens," Knudtson said.
Umm What about Premier?
The Lights at the Soccer Field?
Cheers for you on the homeless thing, but come on Knudt we would be in this position if it wasn't for the Premier thing. Get that settled yet??
"Low operating reserves in the city budget led the council to opt out of the tax holiday and maintain the local 2.75 percent sales tax. The decision is projected to increase city revenue by between $37,444 and $71,088, according to a May 18 city council letter from city finance director, John Richbourg, and interim city manager, Ken Eftink."
Well, let's see. On May 2, 2009 the Missourian Reported.
"No payment has been received since December 2007, and the total back rent due is $354,000. The company is scheduled to begin paying $21,016 a month beginning in January. Since Commander signed its lease in October 2005, the city has spent $803,000 on bond payments."
and
"Commander Premier is now under a city-imposed deadline, set to expire later this month, of showing movement toward finding new financing or being evicted. Commander Premier's president, Greg Walker, said earlier this week that he expects a final resolution to the financial issues within 60 days."
So the taxpayers have to pay the price for Commander Premier's inability to pay??? I mean someone needs to cough up this money! NOW!
This is the ENTIRE reason we're in such a pickle, and still NO accountibility on this! Heads should be rolling because of this!!!! This is basically THEFT from the Taxpayers.
This is just plain stupid!!!
So now Knudtson wants to do the "responsible thing"? There's a 1st time for everything thing I guess. This isn't just Premier. It's a pattern of ineptitude and inability to do the job properly.
Soo we have to pay because of our City Council's gutless actions. Don't count on my vote any of you on the City Council. We'll all remember this next time its time to vote!!
Right on Mega and Hey.
If Premier was your typical homeowner with a loan at Knudstons bank, do you think they will get the same treatment? I think not.
Showing partiality to the Premier company by not having them pay but yet sticking it to the average citizen on the tax holiday has a certain ring to it like what is coming out of Washington these days.
meg,
you have to have lights at a soccer field, c'mon.
as far as this article, one day without sales tax would not kill anyone. it would bring people out to shop which generates $$$$ for local business. duh.
The decision is projected to increase city revenue by between $37,444 and $71,088.
Lets assume this is correct and use the high number of $71,088. Divide this by the census figures from 2000 for the population of Cape (35,349) and you get $2.01 for every man woman and child this tax is being held for.
Now take the same census figures and divide them into the back rent Premier owes ($354,000) and you get $10.01 that every man, woman, and child that is used to support this operation.
I think they are barking up the wrong tree.
As I have said in the past, Maybe someone needs to go to a Schnucks and buy a big fish and wrap it up and send it to them. Maybe they would get the message and start paying up. It worked with the Corleon's business of collecting. LOL
No need sending the fish, our city leaders stink enough already.
Premier was a joke from the very begining. The Honorable Mayor thought he made himself look good back when this deal was struck. Now it haunts him.
This Council continues to disappoint me! Gman is correct. This City and its shakers and makers call themselves conservatives. In reality they are doing nothing but sticking in in our azzes and no different than whats happening in D.C.
Taxes here in Cape are nearing 8 percent!!!!!
Thats higher than most Missouri cities and many other States Cities. And they call this a REPUBLICAN MECCA! Bullshat!..the conservatives in this City are hypocrites. Less taxes my azz.
Yep I am disgusted with those that run this City as well as those who gripe but don't VOTE!!
Taxes are 8%?? I am consistently being charged 9% at several area businesses. Is this illegal? And no, it's not in the Town Plaza, where we are paying owners who collected rent on a building for 30 years to remodel a building so they can collect more rent.
simple, if you feel this way go to another town and do the shopping during this time. go to a town that wants to help the citizens with a tax break, now that could make a difference for the city.
Oh, cmon folks this is Knudtsons last term can't we just let him ride it out? Oh, but then he wants to be a county commissioner.........
I've opted out of shopping in Cape.
"meg,
you have to have lights at a soccer field, c'mon.
as far as this article, one day without sales tax would not kill anyone. it would bring people out to shop which generates $$$$ for local business. duh."
-- Posted by westend on Wed, Jun 3, 2009, at 7:43 AM
Umm....you really don't have any idea what you're talking about do you?? Maybe you better go back and read the article about the soccer field and the lights. I mean...apparently the city council DIDN'T know that.
http://www.semissourian.com/story/154033...
" one day without sales tax would not kill anyone. it would bring people out to shop which generates $$$$ for local business."
Umm...the "Sales Tax Holiday" WOULD generate dollars for local business. Are you saying MORE people would shop in Cape by opting out of it??? Again, you better go back and read the articles on this.
Newbie hit and run posters who don't "really" read the articles. Gotta lov'em.
I breaks my heart that I no longer have school age children to buy school supplies for. I would love to rack up the "tax free" items in Jackson, Sikeston, or Perryville knowing I was spending money that had been earmarked for Cape stores.
I actually live closer to Jackson than Cape but my shopping is pretty well split between the two. Now, with Cape's refusal to release their strangle hold even for a weekend, that will no longer be the case.
I can get the vast majority of my needs and wants taken care of without traveling any extra miles and without giving Cape my business. And that's what I intend to do.
So, starting now, Cape is officially on my boycott list. I realize that no one will miss me not shopping in Cape. But I can guaranty they will lose more from me not shopping there at all than from giving me the tax break.
"Oh, cmon folks this is Knudtsons last term can't we just let him ride it out? Oh, but then he wants to be a county commissioner........."
-- Posted by batt403 on Wed, Jun 3, 2009, at 8:45 AM
He best be thinking about running for the County Line.
What a complete and utter embarrassment this city is of late. I'm usually not one to complain much on the way the city handles up its business, but this is getting ridicules. The recent blunders put to light the many inept ways this beautiful city is being run and managed (into the ground).
Below is my current list of bones to pick.
1) The Premier Aircraft/hanger saga (BTW who's paying the utility bills? I'm sure the city is on the hook for those costs as well.) -- Good Grief!! I would prefer the hanger sit empty as opposed to being sponged off and taken advantage of by fly-by-night organization. This sets up an ugly precedent for future endeavors.
2) Shawnee Sports Complex bid process. Although it was easy enough to initially throw the architect under the bus and put the blame on him. Following a little research along with additional information it becomes much easier to see which side is wearing the Dunce hats.
3) City Manager Hiring Process -- Following a six month search with candidates applying from 24 states, who would have thunk that the very BEST candidate for the job was the mayor's neighbor. Imagine that!!! All along the BEST candidate with absolutely ZERO city managing experience is a friend of the mayor. Ever heard the story about looking like a duck and walking like a duck? According to the mayor the biggest strength of the new city manager is that he knows where Sprigg Street is. WHAT!!! Here all along I thought it would have been that the ideal candidate would have had prior experience running a city. Silly me!
4) Opting out of the sales tax holiday. Due to the cities inability to operate and run the city on budget, the loyal citizens take it in the shorts again and miss out on a small but worthwhile and much appreciated program. Tanks for nutin'!!!
5) Collection & water fee increases. Since this was a unanimous vote by the entire council, maybe the good citizens of Cape will give each of these council members a unanimous vote come the next election cycle. We can only hope. Let's see...... Once again the city leaders total lack of managerial skills has put the community in a hole. How 'bout we increase taxes for the hard working folks of the city to help cover our tracks. Hey Mr. Mayor and council -- HERE'S YOUR SIGN!!!!!!!
If there could be a legal and organized "Vote of Confidence", this one would be a slam dunk.
meg,
i DO know what i'm talking about. the lights were an alternate in the bid.
and, i did say that a sales tax holiday would generate $$$$.
Mega,
Newbie hit and run posters who don't "really" read the articles. Gotta lov'em.
-- Posted by Megalomania on Wed, Jun 3, 2009, at 9:12 AM
Why pick on "newbie" posters - you and others have misread others and made "odd" comments. BTW, in this case I think YOU misread what westend was saying.
Also, I liked you better and respected you more before you decided to join the "bad" boy group. And this is not directed just at you, but any so-called-man who uses or doesn't speak-out against the use of the the "c" word is not much of a man (I don't care if you are a soldier or not - that "man" lacks guts and integrity). It shows a general lack of respect for women and makes me feel for his wife or girlfriend and daughters. For being such an outspoken group - these "men" have been very quiet on this topic. Of course this is my opinion and I'm entitled to it.
Suelynn,
wow, I sure hope I am not in your "bad" boy group.
I agree! that word is not acceptable in my home nor do I use it. I have also noticed much more disrepect here lately. This is why I do not post
as often as I use to. I would encourage everyone
to be more considerate and NEVER use the "c" word when talking about a lady.I will however admitt
that I have used the "b" word from time to time but have learned that its a very bad idea in my Wolf pack. Usually it will be followed with a slap upside the head from Mrs.Wolf and she has strong paws!
Yes you do have a right to your opinion and on this issue your absolutely right. Carry on Girl.
Sounds like the folks at Jackson Walmart better bring on some extra help for that weekend! Folks at the Jackson restaurants better get ready as well - those shoppers will be hungry! Will be interesting to see how much sales in Cape will now go down that weekend! Are there any good electronic stores in Jackson? Would be a good time for Best Buy or someone to put in a mobile store for the weekend.
Sounds like Cape shot themselves in the foot this time!
"i DO know what i'm talking about. the lights were an alternate in the bid.
and, i did say that a sales tax holiday would generate $$$$."
-- Posted by westend on Wed, Jun 3, 2009, at 9:22 AM
West,
My point is it was a BAD OVERSIGHT by whomever put the bid together.
Secondly, "The decision is projected to increase city revenue by between $37,444 and $71,088, according to a May 18 city council letter from city finance director, John Richbourg, and interim city manager, Ken Eftink."
This is the revenue that will be brought in buy COLLECTING the tax on those days, not by causing MORE people to come to Cape to shop. More people WILL NOT shop in Cape because of opting out of that tax, they'll go to Jackson or somewhere that has opted to do the tax. Additionally, with that being the case. Less folks will be in town to utilize gas, restaurants, and entertainment on those days.
It's not my fault the mayor, the council, and city administrators s.c.r.e.w.e.d. up Command Premier and didn't collect!
Sue,
I've not "joined" the bad boys. I march to my own drum, always have. I'm still FOR UHC, wished we would have just nuked IRAQ, IRAN, PAKISTAN Etc, instead of wasting American Lives and Taxpayer dollars on baby footing around looking under rocks.
The "C" word, isn't my beef. I think there is an animosity between men and women on political and professional levels. Always will be. It retains that gender gap.
As far as newbie posters...well, I don't take kindly to being gouged at by some "newbie" who doesn't read the previous articles. I've read what WEST was saying, and I think he's missing the point.
not missing the point at all.
Malan,
You're a shrewd little Indian. Are you sure you guys don't have Jackson "spies" planted over here in our government to make Cape look bad? I mean come on! You've beaten us in sports now, have better schools now, Cape natives are migrating to Jackson, and now this???
I'm gonna keep my eye on you Malan. I still have some Tiger pride left in me. ;o)
If Jackson would get a Lowes, Home Depot or Menards, I would never shop in Cape again. Since they passed the parks tax, Lowes is the only place I spend money in Cape
I live in Cape, and was planning on buying a computer, printer, and monitor at BEST BUY.
Looks like now I will be driving elsewhere to get it all.
The chity of Cape G will not be getting my $$$$$
You don't have to worry about me, Meg. There's enough stupidity among the local officials to make both cities look bad without anyone else helping. While I do pay property taxes in Jackson I have interests in Cape also.
Jackson may participate in the tax holiday but they have certainly shown their behind on other things. Like endangering students by knowingly building a school with inadequate access. Or ignoring traffic studies and building the new I-55 access. How about the high school project that was FUBAR from the word go. Oh! And that stupid median on the hiway 72 project - instant property devaluation. And don't even mention the $1 mil generator.
Hopefully, you can hang onto some of your civic pride. Mine? Any remaining shards are as unrecognizable as my retirement account!!
Jay is a loser, you get what you vote for, Cape better wisen up.
Try Pocahontas Lumber in Jackson. It has everything Lowes has and much better service.
Wal Mart in Jackson will be overflowing, Thanks to Cape and Kundtson
Best Buy in Cape Girardeau will be "Tax Free" this weekend. The store will be discounting their products to make up for Cape's Tax.
I have bought several computers from Best Buy in Cape, and the employees have always done an amazing job in helping me understand new technology.
Go to Best Buy...at least they care about trying to save us money--can't say that about our city politicians!