Gordonville voters to decide vehicle-tax, use-tax measures

Voters in Gordonville will decide the fate of two ballot measures in the Aug. 7 primary election that could boost the village budget and help maintain city streets, a town official said.

Stephen Southard, village attorney, said voters are being asked to maintain the vehicle sales tax and impose a use tax to provide needed tax revenue.

�We don�t have enough money to keep the village up,� he said.

Question 1 on the ballot asks voters whether they wish to �discontinue� the local sales tax on purchases of vehicles, trailers, boats and outboard motors that were purchased from a source other than a Missouri licensed dealer. A �yes� vote would end the vehicle tax and a �no� vote would keep the tax.

The ballot language states approval of the measure �will result in a reduction of local revenue to provide for vital services.�

The second measure, Question 2 on the ballot, seeks to levy a local use tax on out-of-state purchases equal to the existing village sales tax of one-half of 1 percent. The ballot measure states buyers won�t have to file a use-tax return if his or her purchases from out-of-state vendors do not exceed $2,000 in any calendar year.

Southard said state law requires a vote by November on whether to maintain the village�s vehicle sales tax. Without voter action, the tax would expire, he said.

The tax generates about $8,000 to $10,000 annually, which goes to fund sewer improvements, he said.

Approval of the use-tax measure would allow Gordonville to collect sales tax on all out-of-state purchases, including vehicle sales, Southard said. Passage of that measure would make the first measure unnecessary.

The village board placed the use-tax issue on the ballot before the U.S. Supreme Court, by a 5-4 decision, ruled in June online purchases constitute taxable retail sales.

Richard Sheets, deputy director of the Missouri Municipal League, said after the ruling he believes local governments should be able to levy sales taxes on online purchases without having to seek voter approval of a use tax, provided state lawmakers pass legislation governing such tax collection.

Meanwhile, village officials don�t want to risk losing revenue from the existing vehicle sales tax should voters reject a use tax, which is why the first measure is on the ballot, Southard said.

It�s estimated a use tax would generate additional sales tax revenue of $1,000 to $1,200 beyond that already collected from vehicle sales, Southard said.

While the estimated revenue from the taxing of out-of-state purchases is relatively small, it is �a pretty significant number� for the village of Gordonville, he said.

Simple majorities are needed to pass the measures.

mbliss@semissourian.com

(573) 388-3641