County officially puts use tax on April ballot

Voters in Cape Girardeau County and the city of Cape Girardeau will decide this spring whether a use tax should be charged on purchases made across state lines.

After a public hearing on use tax held by the county commission Thursday, commissioners unanimously approved placing a question on the April 8 municipal ballot. The city of Jackson may also place a use tax question on the ballot on the same date. A public hearing and vote by Jackson's board of alderman is set for 7 p.m. on Jan. 21 at Jackson city hall.

Executives and boards from area chambers of commerce have voiced support of a use tax in recent months because they say they believe it will "level the playing field" for local businesses such as auto dealers.

Missouri municipalities began placing use-tax questions on the ballot after the state supreme court ruled in 2012 that local governments could not charge sales tax to Missouri residents on certain purchases made out of state. The legislature and governor have since allowed governments to keep collecting local sales taxes on purchases with the passage of a law in 2013, but it stipulates that governments only can keep charging tax on those purchases through a voter-approved use tax. A use tax measure must then be approved by voters before November 2016.

If passed by voters, use tax amounts will equal the amount of general sales tax charged by governments -- meaning in Cape Girardeau County, voters will decide on a 1 percent tax. In the city of Cape Girardeau, voters will decide on the 1 percent county tax and the city's 2.75 percent tax.

One person, Esther Bohnert of Jackson, spoke against a use tax at Thursday's hearing before the commission. Bohnert read an extensive list of taxes and governmental fees she said already are charged to businesses and individuals to bring attention how much of a tax burden people already face, she said.

"How much more money does our government need?" she asked.

Brian Gerau, executive director of the Jackson Area Chamber of Commerce, said he agrees people are overtaxed. But he said he and the chamber board, along with the businesses they represent, support a use tax because they don't consider it a "new tax."

Use-tax supporters say the challenge of passing it is many people don't understand they pay the same amount in sales taxes now as they would if voters approve a use tax in April -- as long as they buy local.

John Mehner, president and CEO of the Cape Girardeau Area Chamber of Commerce, said no incentives, especially created by the tax system, should exist for people to buy across state lines. He said they instead should buy from local businesses and pay the same amount in taxes.

Jackson business owner Charlie Glueck, vice president of the Jackson chamber of commerce board, also spoke in support of a use tax, though he said he is fundamentally against new or raising taxes.

"I don't know that there's anybody in here that would support more taxes," Glueck said, "but the thing that sticks in my mind is that if you buy everything at home, this does not apply to you."

Doug Austin, a retiree from Cape Girardeau, said he supports a use tax because without one local governments will lose money -- and he wants to keep the services the governments provide.

"I don't want taxes," he said. "Neither do I want to live across the river in Illinois. If you want it, you have to fund it."

An estimate in 2012 by the Missouri Association of Counties showed Cape Girardeau County's revenue would drop about $250,000 annually if the state Supreme Court ruling that disallowed collection of sales taxes on out-of-state purchases was left in place.

The state of Missouri already has a voter-approved use tax of 4.225 percent.

eragan@semissourian.com

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