Use tax meets opposition in Cape Girardeau County hearing

The Cape Girardeau County Commission heard nothing but opposition to a ballot issue that would allow the county to indefinitely collect tax on out-of-state vehicle purchases at a public hearing Friday.

The commission hosted the hearing to get input on placing a so-called "use tax" on the ballot.

"It's a disappointment to me that we're looking at this in a tax-only way," said Brian Bollmann of Jackson. "And do we really need to do this by November? Are we going to incur the cost of a special election to get this on the ballot?"

David Larson of Jackson, a retired master sergeant of the Marine Corps, said the dispute surrounding the use tax was "window dressing" for a larger issue.

"This red herring was devised to distract the attention of the taxpayer from the consolidation of authority at the county level," Larson said.

The hearing, held in the administration building in Jackson, drew about 15 people and served as a forum on placing a 1 percent tax on large out-of-state purchases on a ballot as early as November.

The collection of sales taxes by local and county governments on out-of-state vehicle and other purchases without a use tax was ruled unconstitutional by the Missouri Supreme Court in 2012. But under a law signed by Gov. Jay Nixon this summer, counties and municipalities could resume collection of the use tax until November 2016, and they have until that time to persuade voters to allow use taxes indefinitely. If county voters passed a use tax, Cape Girardeau County would join 56 other Missouri jurisdictions that levy such a tax.

"It's called a use tax because you're purchasing something across state lines and bringing it back to Cape County to use," presiding commissioner Clint Tracy said. "This is on purchases of $2,000 or more that you would normally pay a sales tax on in Missouri."

Linda Reutzel of Jackson said as a taxpayer, she wants to pay the least tax possible.

"But now you're saying we cannot shop for the least tax on our cars, boats and trailers," she said. "It's our tax money."

"If you don't want us to level the playing field," Tracy said, "are you insinuating that we should have to pick winners and losers in this?"

"What I'm insinuating is that the government does that all the time," Reutzel replied.

Tracy said without the use tax, the consequences of locals buying vehicles across state lines would have a ripple effect.

"The point is, a dealership supports the local community," he said. "It creates 60 to 70 jobs. They pay their property taxes, and they sponsor Little League teams. I could buy a car in Illinois and take advantage of the savings, but all of a sudden 70 people are out of jobs and there's empty buildings. It's subsidizing Missouri people to go to Illinois to do business."

County Clerk Kara Clark Summers said the county commission must approve a tax issue before 5 p.m. Tuesday if it is to appear on the November ballot. The commission is scheduled to resume discussion of the ballot issue at its 9 a.m. Monday meeting.

"We've got plenty to chew on here," Tracy said. "I think clearly there's more educating to be done and more discussion to be had."

klewis@semissourian.com

388-3635

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