Cape, Jackson, Scott City all to ask for internet sales 'use' tax on November ballot

Voters in at least three local municipalities should expect to see a referendum Nov. 2 asking for approval of an internet sales tax, formally a "use" tax.

At Monday's Cape Girardeau City Council meeting, at which a final vote was taken to inform the Missouri secretary of state to put the issue on the ballot, Mayor Bob Fox did not mince words.

"(This tax) is one of the most important things, next to the hiring of our new city manager, that I'll ever do on City Council," Fox said.

"Two years ago, we cut a million dollars from our budget," he added, noting city manager Ken Haskin came to Cape Girardeau from a city that already had such a tax on the books -- Texarkana, Arkansas.

"(Haskin) told me in a letter that our costs are outpacing the revenue that is being brought in from bricks-and-mortar businesses," Fox said.

First Ward Councilman Dan Presson also chimed in his support.

"Amazon does not pay to use our streets and (company founder) Jeff Bezos is going into space," he said.

To Cape Girardeau residents who have turned down a use tax four times in the past -- in 2016, 2014, 2003 and 1996 -- Fox made an appeal: "Think about this (issue) and pass the word."

Jackson

Jackson's Board of Aldermen also gave final OK on Monday to asking voters in the Cape Girardeau County seat to allow a tax on internet sales.

Similar to Cape Girardeau, Jacksonians have turned down previous plebiscites authorizing such a levy in 2019, 2016, 2014 and 1996.

Mayor Dwain Hahs said Monday if voters greenlight the tax, the resultant revenue should be used to support the city's parks and recreation departments, "for things like park improvements, expansion and staff growth."

Hahs added the city plans to work with a marketing consultant to develop educational messaging about the use tax, specifically what it is and how monies will be used.

"I think October will be the key month for communication to our citizens," Hahs said.

Scott City

Scott City Council is also placing a use tax on the ballot Nov. 2, according to city administrator Mike Dudek, who indicated the city could have seen as much as quarter of a million dollars in additional revenue had a pre-pandemic internet sales levy been in place in 2019.

Gov. Mike Parson signed the Wayfair bill June 30 originally passed by the Missouri General Assembly, making the Show Me State the last one in the country to approve such enabling legislation for the taxing of internet sales.