Use tax will help support local business

A local use tax is not charged in addition to sales tax

On behalf of the board of directors of both the Cape Girardeau Area Chamber of Commerce and the Jackson Area Chamber of Commerce, we respectfully request your vote in support of a local use tax April 8. Both chamber boards believe it is the responsible thing to do to put our local businesses on the same competitive footing as out-of-state businesses.

Use tax cannot be charged in addition to sales tax. The state of Missouri already imposes a use tax and we believe it is time we act on behalf of our local businesses and ask for the companion local use tax. Not doing so provides an incentive to make purchases from out-of-state vendors to save sales tax.

By definition, a use tax is imposed on the storage, use or consumption of tangible personal property in this state. The state use tax rate is 4.225 percent. Cities and counties may impose an additional local use tax. The amount of use tax due on a transaction depends on the combined (local and state) use tax rate in effect at the Missouri location where the tangible personal property is stored, used or consumed. Local use taxes are distributed in the same manner as sales taxes.

Unlike sales tax, which requires a sale at retail in Missouri, use tax is imposed directly upon the person that stores, uses or consumes tangible personal property in Missouri. Use tax does not apply if the purchase is from a Missouri retailer and subject to Missouri sales tax.

A purchaser is required to file a use tax return if the cumulative purchases subject to use tax exceed $2,000 in a calendar year. (Taken from Missouri statutes.)

On April 8, you will be asked to consider a local use tax. Cape Girardeau, Jackson and Cape Girardeau County are seeking this companion use tax. If you live in the city of Cape Girardeau, you will be voting on both the Cape Girardeau city and the county use tax. Likewise, Jackson residents will be voting on Jackson and the county use tax. County residents only will be voting on the county issue.

Remember the investment in our area made by our local businesses. Please help protect their interests by voting "yes" on April 8. For more information, please see our Frequently Asked Questions document at capechamber.com/usetax. If you have additional questions, do not hesitate to call us.

John Mehner is the president and CEO of the Cape Girardeau Area Chamber of Commerce. Brian Gerau is the executive director of the Jackson Area Chamber of Commerce.