Jackson hopes third time's a charm for use-tax measure

The third time could be a charm for a Jackson use-tax measure.

The city has tried twice before unsuccessfully to pass a use-tax measure, but Jackson Mayor Dwain Hahs said he thinks this time could be different.

Hahs said last time Jackson leaders put a use-tax measure on the ballot, initial priorities weren’t discussed.

This time, city leaders are touting projects the city can’t afford without a use tax, including startup costs for a curbside recycling program, LED streetlights from Interstate 55 to the Walmart area on East Jackson Boulevard and construction of a new municipal swimming pool.

A 2.5 percent use-tax measure on the April 2 ballot would allow the city to fund such projects, according to Hahs.

The sales tax would generate an estimated $600,000 to $750,000 annually, Hahs said.

Hahs said the public has expressed interest in having curbside recycling. In Jackson’s 2017 community survey, 61 percent of respondents indicated curbside recycling should be a “high” or “very high” priority.

Curbside recycling has been a discussion point by city leaders for some time

At the aldermen and city staff retreat in October 2017, administrative services director Rodney Bollinger discussed possible curbside recycling costs.

Bollinger reported at that time companies were charging customers from $6 to $8 per month for curbside recycling.

Hahs said the city would need to purchase a truck and bins for residents who would opt in to the service.

Hahs said no cost estimate has been determined for a new swimming pool. He said a committee would need to be formed and a consultant hired to plan for the project. He likened the process to the new police station project, which broke ground earlier this month.

“That was a five-year process,” Hahs said, adding the swimming pool process would likely be shorter if more funding were available.

As to the project to add streetlights, Hahs said the city would apply to have a joint project with the Missouri Department of Transportation to help offset some of the cost.

“I tell people to drive from Interstate 55 to Cape Girardeau and see what a difference it makes to have lighting,” Hahs said.

“It’s a very visible difference. It adds to safety, and would make a more welcoming approach to our city,” Hahs said.

The city’s budget relies heavily on sales tax revenue — it’s 65 percent of the budget, Hahs said.

And in recent years, sales tax has been flat, largely as a result of online purchases, he said.

The use tax would apply to those online purchases.

Hahs said the 2.5 percent charge automatically would be applied by vendors to purchases made by Jackson residents if the use-tax measure passes.

Only purchases made outside the State of Missouri and brought into Jackson would be subject to the tax, Hahs said.

If sales tax is charged on the purchase, the use tax wouldn’t apply, he said.

“It’s about fairness,” Hahs said, noting dollars spent online by Jackson residents don’t create revenue toward providing services or improving roads and public safety in Jackson.

Jackson Area Chamber of Commerce executive director Brian Gerau wrote in a statement local retailers are investing in Jackson, and are vital to growth.

“They are the ones creating jobs, and supporting our schools, civic groups and sports teams,” Gerau wrote. “I’ve never once seen Amazon or eBay on the back of a basketball jersey or assisting in a community fundraiser.”

Hahs said other local governments in Southeast Missouri are benefiting from use taxes. They include Cape Girardeau, Bollinger and Perry counties, and the cities of Chaffee, Advance, Dexter, Perryville and Ste. Genevieve.

“With this use tax, we are making sure we’re keeping the citizens well served,” Hahs said of the ballot issue. “It’s the city’s job.”

mniederkorn@semissourian.com

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