Cape officials pondering 2012 sales tax holidays

Cape Girardeau officials are again weighing whether to participate in the state's two sales-tax holidays, with several saying for various reasons that it's not likely to happen again this year.

For the past three years, the Cape Girardeau City Council has opted not to forgo its 2.75 percent sales tax during Missouri's back-to-school sales-tax holiday for a weekend in August.

And the city has never participated in the state's three-year-old Show-Me Green Sales Tax Holiday, which for a week in April exempts sales tax on purchases of certain energy-efficient household appliances.

The council discussed the tax holidays during its study session Monday night. City manager Scott Meyer asked the council to let him know if they want the city to participate this year.

Meyer had not heard back as of Tuesday afternoon. But, in separate interviews, four council members said they are again leaning against suspending the city's sales tax for either holiday.

"I would be of the mindset -- and it's open for discussion -- to stay out of both of them at this point," Mayor Harry Rediger said. The city should be consistent in either taking part in the holidays, or not, Rediger said, instead of wavering on participation each year.

Council members Loretta Schneider, Mark Lanzotti and Kathy Swan each agreed in part, and some of them said that now is not the time to cut into city coffers.

According to a city report, in the five years the city did participate in the back-to-school sales-tax holiday since its 2004 inception, it cost the city anywhere from $50,000 to $70,000 in sales tax revenue each time.

"Certainly I would like us to have a sales-tax holiday," Schneider said. "But I don't know that, in these difficult times, we can afford it."

If the city wishes to opt in to the Show-Me Green Sales Tax Holiday, an ordinance would have to be introduced by Feb. 6.

Since the city has opted out of the back-to-school sales-tax holiday, an ordinance would have to be introduced by May 21 for the city to opt back in.

Regardless of what the council decides, there will be some savings for shoppers in Cape Girardeau during both events because the state's 4.225-percent sales tax rate will be lifted. Shoppers would also save the county's 1 percent portion, if the county government decides to waive its sales tax during the holidays.

The back-to-school tax holiday begins on the first Friday in August and continues through the following Sunday. The state taxes will be suspended for the purchase of school supplies, computer items and clothing.

The state tax will also be lifted during the Show-Me Green holiday from April 19 through 25 on appliances that have been specially certified as energy-efficient, including washers, dryers, water heaters and trash compactors.

Cape Girardeau County Commissioner Paul Koeper and Jackson Mayor Barbara Lohr each said sales taxes would likely be suspended again in those jurisdictions. Jackson has a 1.5-percent sales tax.

Jackson has participated in both sales-tax holidays since they were implemented, Lohr said, adding she was "sure" they would do that again this year.

Koeper said the commission hasn't even discussed it yet, but he doesn't think the county has missed a year of the back-to-school sales-tax holiday, although it hasn't participated in Show-Me Green.

"My first thought right now is that we'd do the same this year," he said.

Many Missouri cities (169) and counties (50) opted out of the back-to-school sales-tax holiday in 2011, while 43 cities and nine counties participated in Show-Me Green.

smoyers@semissourian.com

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Pertinent address:

401 Independence St., Cape Girardeau, MO