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NewsAugust 4, 1995

A half-cent, transportation sales tax would be a small price to pay for road and bridge improvements, proponents say. If voters approve the tax Tuesday, shoppers would pay a nickel more on a $10 purchase. "It certainly is less of an impact than trying to increase property taxes," said Doug Leslie, acting city manager...

A half-cent, transportation sales tax would be a small price to pay for road and bridge improvements, proponents say.

If voters approve the tax Tuesday, shoppers would pay a nickel more on a $10 purchase.

"It certainly is less of an impact than trying to increase property taxes," said Doug Leslie, acting city manager.

As much as half of the sales tax money would come from out-of-town shoppers, said tax proponent and local businessman Harry Rediger. Out-of-town shoppers use city streets and should pay part of the bill for road improvements, he said.

In turn, improved roads will encourage out-of-town residents to continue to shop here, he said.

Rediger chairs the city Planning and Zoning Commission, which helped formulate the tax plan. Rediger and other civic leaders have formed the Transportation Trust Committee to campaign for the tax.

Committee Chairman Jim Wente said the sales tax is a fair way to pay for street improvements.

The half-cent sales tax is projected to raise $17 million over five years. But the tax could raise more.

The $17 million estimate is based on 3 percent annual growth; however, over the past 10 years, sales tax growth has averaged about 5 percent annually.

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Cape Girardeau currently has a 1-cent general sales tax and a quarter-cent capital improvement tax. The capital improvement sales tax pays the city's share of the Cape LaCroix flood-control project and later will go to pay off sewer bonds.

When county and state levies are added in, consumers pay nearly 6 cents in sales taxes for every dollar they spend in Cape Girardeau. The sales tax rate is the same in Scott City.

If the transportation tax passes, the total sales tax rate in Cape Girardeau would increase to nearly 6.5 cents. That would be higher than the sales tax rates in Jackson, Sikeston and Scott City; Jackson and Sikeston both have transportation taxes and total sales tax rates of 6.2 cents.

Cape Girardeau business leaders, like Rediger, say the increase is too small to drive away consumers.

Most consumers don't even know how much sales tax they are paying, Rediger said.

Cecelia Sonderman, 76, has talked to senior citizens who say they will vote for the tax.

"Most seniors feel like this issue will come up again if it fails," Sonderman said. "They would rather pass a sales tax than have their property taxed to pay for road improvements."

Cape Girardeau has a low property tax rate. The tax levy for Cape's municipal government and public library is 63 cents per $100 assessed valuation.

The city and library tax rate is significantly less than in neighboring cities: Perryville has a 99-cent tax rate while Jackson's rate is $1.05.

Saturday: Getting out the vote. Committee campaigns for transportation tax measure.

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