Scott County's use tax has brought in more than $250,000

After a year of collecting a use tax from the citizens of Scott County, presiding commissioner Jamie Burger said the main purpose of the tax is to "level the playing field."

Although the use tax passed in November 2013, Burger said the county didn't get into the "full collection swing" until May 2014.

The countywide use tax of 1 cent on the dollar was approved 634-461 in the 2013 election. Voters approved placing a local use tax on out-of-state purchases in an attempt to eliminate the sales tax advantage out-of-state vendors have over Missouri vendors.

"It was first put on the ballot in April 2013 and didn't pass, so we went out (and) tried to explain it better," Burger said. "It's hard to understand, but basically we're leveling the playing field. Giving out-of-state retailers a percent advantage isn't fair to our local businesses."

Burger said while he supports the use tax, he understands the need for competitive bidding -- especially in a competitive market such as selling cars.

"Mainly it's for motor vehicles, the use tax -- anything bought inside state boundaries is already collected by the state of Missouri," Burger said. "Two thousand dollars is supposed to be the minimum to claim on your federal income tax, but a lot of that is based on the honor system."

The voter-approved use tax can be levied on out-of-state purchases of titled vehicles, including automobiles, boats and other recreational vehicles, along with purchases of other "tangible personal property" as defined by state law. Consumers are required to file a use-tax return with the Missouri Department of Revenue.

Scott County isn't the only one that implemented the tax; it also was approved in recent years by Perryville, Perry County and Bollinger County, Missouri.

A use-tax proposal also is on the Cape Girardeau County ballot for Tuesday's election, even though voters previously rejected a similar proposal.

Burger said Scott County collected $251,818 in use-tax funds in 2014.

This number was close to what the Missouri Association of Counties estimated it would generate.

"The Missouri Association of Counties showed what (it) would earn, and we thought the estimates were very high, but it was very close to what they estimated," Burger said.

Burger said the tax has helped keep money local.

smaue@semissourian.com

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