Scott County defeats use tax; Perry County, city, Bollinger County approve

Ballot measures designed to recoup lost sales tax on out-of-state purchases were overwhelmingly approved in Perryville, as well as Perry and Bollinger counties. The issues failed in Stoddard County and in Scott County, where few interviewed said they understood what was being asked.

"We are delighted," said Perryville Mayor Debbie Gahan, where the measure passed with 70 percent of the vote in the city and 68 percent in the county. About 13 percent of registered voters cast a ballot.

"I think it really was a fairness issue and the support of the businesses in our community. Those two really go hand-in-hand," Gahan said.

The ballot questions were created in reaction to a Missouri Supreme Court decision last year that changed the way local counties and municipalities could collect taxes on vehicles purchased out of state.

Until that time, no matter where a person bought a car, sales taxes were paid on it at registration according to the local rate associated with the buyer's home address. The ruling said that local sales taxes could not be levied on out-of-state purchases of motor vehicles, trailers, boats and motors. Since then, only the state use tax of 4.225 percent has been levied in areas with no local use tax.

According to estimates by the Missouri Department of Revenue, Perry County would lose more than $117,000 yearly, Bollinger County stood to lose around $57,000, Scott County would collect $135,000 less and Stoddard County would take in about $122,000 less in taxes.

Steve Keller, owner of Keller Motors in Perryville, came out to educate voters at Perryville City Hall Tuesday. He said he wanted to make sure people understood that most individuals would not be assessed the tax, unless they were planning on buying a vehicle out-of-state.

"It's just a shame that people are voting on it and don't know what it is," Keller said.

Keller was distributing informational brochures touting the tax as a mechanism to "level the playing field" for local businesses.

The Perryville Area Chamber of Commerce, Perry County Economic Development Authority, Perryville Development Corp., Missouri Chamber of Commerce, Missouri Association of Counties, United for Missouri, Missouri Municipal League and Missouri Auto Dealers Association were named in the brochure as supporting the initiative.

Gahan attributed some of the measure's success to Patrick Naeger of the Perryville Development Corp. and Brent Buerck, city administrator, who presented information at a forum March 20 along with local businesspeople, who she said could have lost customers over the issue but weren't afraid to speak up for what they believed was fair.

Most voters interviewed as they exited Perryville City Hall said they understood the measure.

Two of those declined to state their choices, but four said they voted in favor of the tax because they thought money that could no longer be collected due to the change in the law should be reclaimed by the city and county.

"I think it should be brought back," said one man, who declined to be identified.

Two other voters said they didn't understand the issue and voted no.

At Broadway United Methodist Church in Scott City Tuesday morning, most voters said the Scott County use tax question was confusing.

Eight of nine voters polled exiting the site, all of whom did not want to be identified, said they voted against the use tax because they didn't understand it or hadn't heard about it before seeing it on the ballot.

One man said he already felt he was "taxed enough." Others said they were just not sure what it meant.

"I think a lot of people just perceived it as another 1 percent tax on top of what they were already paying, but so many people weren't going to see a change," said Jamie Burger, Scott County presiding commissioner. "They probably voted against something that really isn't going to affect them, but the voters have spoken, and we respect that."

About 62 percent of voters in Scott County nixed the tax.

Just a bit more than 12 percent of registered voters came out to vote.

The issue passed with 60 percent of the vote in Bollinger County, where 8 percent of registered voters turned out at the polls. In Stoddard County, 55 percent of those casting votes said no.

In the town of Dexter in Stoddard County, a use tax also was handily defeated.

The proposed use taxes equaled the local sales tax rate. In Scott and Stoddard counties, a 1 percent use tax was proposed; in Perry County and in Perryville, the rate was 1.875 percent.

In Bollinger County, the rate was 1.625 percent. The measures proposed by Perry, Bollinger and Scott counties and by Perryville noted that if the local sales tax was repealed, reduced or raised by voter approval, the respective local use tax would be subject to the same action and stipulated that taxes would not be levied unless purchases from out-of-state vendors exceeded $2,000 within the calendar year, exempting most individuals who make occasional purchases from the tax.

In related legislation, a bill advanced by Sen. Mike Kehoe, R-Jefferson City, that would allow local sales taxes -- instead of use taxes -- to be levied on vehicle purchases has been taken up for a third reading in the House.

salderman@semissourian.com

388-3646

eragan@semissourian.com

388-3627

Pertinent address:

215 N. West St., Perryville, MO

1400 Broadway, Scott City, MO

Scott County, MO

Stoddard County, M.