County use-tax collection rises in second month

As officials had hoped, Cape Girardeau County's second monthly use-tax collection was significantly higher than its first.

This month's report recently was issued by the Cape Girardeau County Treasurer's Office and showed a collection of more than $49,300.

The September report had a total of $19,444 in revenue collected, which was lower than county officials anticipated. County Treasurer Roger Hudson, after speaking with members of the Missouri Department of Revenue, explained that is often the case.

Late payments and payments submitted on a quarterly rather than monthly basis are two primary reasons behind low collection totals during the early months, he said. The fluctuation is likely to continue in the first few months, but Hudson expects use-tax collection probably will get to the point where it is "somewhat predictable."

Associate Commissioner Charlie Herbst said the county knows the numbers likely are to rise and fall. Commissioners see the same thing happen with sales-tax revenue.

"One month, it might be up 4 or 5 percent, then it might be down 15 percent the next month," he said of sales-tax collections.

Besides payment cycles, economic activity can affect how much the county collects in a given month. A major construction project in Cape Girardeau County could boost numbers, for example, because the county would receive the use tax applied to all of the out-of-state materials purchased.

The Missouri Department of Revenue defines use tax as a tax "imposed on the storage, use or consumption of tangible personal property in this state." Among the items to which the tax applies are titled vehicles -- including automobiles, boats and other recreational vehicles -- bought out of state.

Consumers are required to file a use-tax return with the state department of revenue if untaxed purchases from out-of-state vendors in a calendar year equal more than $2,000.

The county began use-tax collections in July after voter approval of a 1 percent use tax in April. Tax revenue provides funding for upgrades to county facilities, including the planned construction of a new courthouse.

While everyone is keeping an eye on the monthly reports, officials are most concerned about annual income because it will be the most important figure for determining bond financing for the new courthouse.

"We're still kind of holding to that collecting [revenue] for 12 to 18 months to see what the average is on it," Herbst said.

He said the latest collection is "more favorable" and closer to what officials would like to see each month, though it still is short. To meet an annual goal of about $1 million requires a monthly average close to $100,000.

While much of the planning and architectural work for the new courthouse cannot be done until the county has established the annual income base, early planning with input from the public and groups involved in the court system could begin somewhat sooner.

srinehart@semissourian.com

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