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OpinionJuly 3, 2001

In the end, it was -- as it is with so many lawsuits -- a technical glitch that caused a three-judge panel of the Missouri Court of Appeals to set aside Cape Girardeau's 1998 election on sales taxes for Southeast Missouri State University's proposed River Campus...

In the end, it was -- as it is with so many lawsuits -- a technical glitch that caused a three-judge panel of the Missouri Court of Appeals to set aside Cape Girardeau's 1998 election on sales taxes for Southeast Missouri State University's proposed River Campus.

In passing an ordinance to place the sales-tax issues on the ballot, the city council used what is commonly called a short title. The intended purpose of the election was to increase the sales tax on motel bills and extend both the motel and restaurant sales taxes to the end of 2030. But, the appellate judges decided, the short title did not adequately inform voters that revenue from the sales taxes would be used for cultural facilities as well as Convention and Visitor Bureau operations.

Although the sales-tax issue passed, requiring only a simple majority, a companion bond issue that would have paid for the city's share of the River Campus failed. The bond issue received more than a simple majority but less than the required 57 percent. Later, the city and university decided to take advantage of state-issued bonds that don't require voter approval. Businessman Jim Drury sued the city, claiming the sales taxes couldn't be collected beyond their current 2004 expiration because the bond issue failed.

All along, Drury has said it is the city's decision-making process, not the River Campus project, that he opposes. At one time, he offered to foot the bill for another election so voters would have an opportunity to approve the sales-tax issues to pay for the state-issued bonds. But the city said it had voter authorization to collect the sales taxes and didn't need another vote, even though the revenue would be used to pay for different bonds.

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Now city officials are concerned that the appellate ruling jeopardizes all ordinances -- even legislation passed by the General Assembly -- that uses short titles, which is most every piece of legislation or ordinance adopted for many years. Whether that concern is valid would also have to be tested in court.

At a minimum, appealing this case to the Missouri Supreme Court could take a minimum of two years to decide. That would put a decision in mid-2003 with the current authorization for sales taxes on motels and restaurants set to expire in 2004. If for some reason the Supreme Court took even longer to issue its ruling, it's possible the city would have to stop collecting those sales taxes and find other funding for the CVB or shut it down.

There is, and always has been, a solution that is far less time consuming: Have another election on the motel and restaurant sales taxes. Make it clear the revenue would be used to pay off state-issued bonds. Make it clear the bonds would be used for the River Campus, including its cultural components.

And let the people decide again.

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