Public hearing on use tax planned for Friday

Cape Girardeau County commissioners held an in-depth discussion Monday about a use-tax proposal and set a public hearing for Friday they hope will gather input about the issue, which could go before voters in November.

If voters were to pass a use tax, Cape Girardeau County would join about 55 other jurisdictions in Missouri able to charge a tax equal to the county's general revenue sales tax on vehicles and other goods costing more than $2,000 that are bought across state lines or from individuals. Bollinger and Perry counties and Perryville passed use taxes in April. Scott County voters rejected a proposal.

The county commission must vote before Aug. 28 for a use-tax question if one is to appear on the November ballot. The county use tax, if passed, would be 1 percent.

Presiding Commissioner Clint Tracy said placing a use tax on the ballot has been discussed by the commission before, but commissioners now are ready to act since municipalities have until November 2016 to hold an election on the issue, as set out in a law signed by Gov. Jay Nixon this summer. The law set the time frame for elections and allowed cities and counties to again begin collecting sales tax on certain purchases. Collection of the sales tax on vehicle and other purchases by local and county governments was deemed unconstitutional by the Missouri Supreme Court in 2012. Now, counties and municipalities have to hold an election on use taxes, and have the question pass, to be able to collect the amounts of the vehicle sales taxes as use taxes indefinitely.

Cape Girardeau County's commissioners, as other supporters have said, believe a use tax would create a level playing field for businesses. If the county is unable to collect taxes on items such as cars and building materials bought out of state by applying a use tax or regular sales tax, they say, businesses in states such as Illinois are likely to draw customers away because of the potential for savings, while those same customers use county roads and services or may be working on a local building project. The state does have a use tax, meaning it can always collect a 4.225 percent tax on purchases of vehicles and other items.

The Missouri Association of Counties estimated last year that Cape Girardeau County could lose $250,000 yearly in revenue without the ability to tax out-of-state purchases.

Several people with questions or concerns about the issue spoke to the commission Monday. Esther Bohnert of Jackson said she believes the commission was in a rush to get the use tax question on the ballot and questioned the purpose of the county having a use tax.

"Is it our job, though, to level the playing field?" Bohnert said to the commission. "We could be passing laws until the cows come home if it's an issue of leveling the playing field. Or is it an issue of lack of revenue for the county?"

"It definitely affects revenue for the county," Tracy said. "But we shouldn't support rules that incentivize you to go spend money in other states."

Though the commissioners have their own opinions on a use tax, they said Monday their purpose is primarily to educate voters.

"Our job is to make sure that as a voter, you have a clear and concise idea of what the issue is," Tracy said.

Associate Commissioner Paul Koeper said a use tax would not only benefit local businesses, but could also hold the key to a need for the county -- a new courthouse facility. An architect is nearing a point in a facilities study that will present options for new consolidated facilities for court and other county government offices. Discussion of the need for new facilities has been ongoing for several years as the county has struggled with upkeep of its two 100-plus-year-old courthouses and faced limited space and accessibility in other offices. Until Monday, the commission had not publicly voiced any ideas for the possibilities of funding a new facility.

"If this [use tax] was passed, was approved by the voters, I'm just thinking out loud here that there would probably be no other funds needed to build a new courthouse," Koeper said. "We wouldn't have to go to the voters and say we need to increase property tax to build another court facility. That's the amount of money this is that people are spending out of this county. So I just look at that as a plus."

Koeper said he thought a $10 million to $15 million funding plan could possibly get the county what facilities it needed, and "it's a good possibility that this revenue stream would help to offset that."

If Cape Girardeau and Jackson also decide to seek use taxes in the future, those would be separate ballot questions. Cape Girardeau's city council decided not to go for a November election at its meeting Monday, citing concerns with the short time frame the council would have to get a use tax question on the ballot. If the council had decided to attempt a placement on the November ballot, a public hearing would need to be held on the issue along with a special meeting where the council would have to pass an emergency measure, all before the middle of next week. Council members unanimously agreed there was no need to rush the process, especially since the city is currently able to collect the tax. Jackson's board of alderman also planned to discuss a use tax ballot question at its Monday meeting.

The public hearing on the use tax ballot question for the county will be at 10 a.m. Friday in the commission's meeting chamber at the administration building in Jackson.

eragan@semissourian.com

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