Full court press on use tax as Nov. 2 approaches

The municipalities of Cape Girardeau, Delta, Jackson and Scott City are all asking voters two weeks from now to pass a use tax — informally, a levy on internet online sales — on the upcoming November ballot.

Jackson Mayor Dwain Hahs and Jackson Area Chamber of Commerce executive director Brian Gerau have been speaking, nearly on a daily basis, to groups and individuals — pleading with them to give approval to a referendum authorizing a 2.5% tax on internet sales — the same rate as the city's current sales tax.

"You will never pay sales tax twice on the same item," Hahs reminded attendees at Friday's Jackson chamber business breakfast, noting the law doesn't permit the imposition of a levy on online sales "without a vote of the people."

This is Jackson's fourth attempt to get a use tax authorized in the county seat community by plebiscite. The last try, in April 2019, the question failed by 82 out of 1,298 votes cast.

"It's going to pass," Gerau predicted confidently in his remarks at the breakfast. "This (tax) is a game changer for our community."

Business backing

Gerau referenced the support of retired Jackson Tire founder Charlie Glueck, who started his business at 1901 E. Jackson Blvd. in 1980.

"I definitely support (the use tax)," Glueck told the Southeast Missourian, who said customers look at in-store and online prices for the same item and do a price comparison.

"Because people don't have to pay (internet) sales tax on a large purchase, say $800 to $1,000 on a set of tires, sometimes that's the difference between us getting the deal and a customer buying online," he said. "You can buy anything online and in a small town, it's tough. Everybody's working hard to try to make a living."

Glueck said there is another side of the use tax question for him as a long-term local businessman.

"When the local organizations want help — when the Boy Scouts, the local soccer, baseball, softball, football teams want help — they go to their local merchants for sponsorships and donations. They don't go to Amazon," Glueck said. "From my viewpoint, getting the use tax will help level the playing field for us."

Hahs said revenue from the use tax, should voters approve, will go entirely to fund repairs, upgrades and improvements to city parks and sports fields.

Specifics

In coordination with local sports league leaders, city officials have set the following priorities for use tax revenue in Jackson.

• expansion of the recreational trail system.
• paving parking lots at sports fields.
• installation of lighting at sports fields.
• upgrading bathroom facilities at parks and sports fields.
• maintenance on courts and fields used by youth and adult leagues — including soccer, football, softball, baseball and pickleball.

"This tax will be an economic development tool for Jackson," Gerau said. "If we up our amenities, it'll bring more people here to use our facilities and fields, and when that happens, everybody wins."

Hahs said the City of Jackson anticipates a local use tax will generate $500,000 annually for the city's parks and recreation department.

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