Vote 'no' on use tax

The use tax "question" is on the ballot again April 7th. Cape Girardeau County is currently collecting it. If this 1 percent tax doesn't pass by November 2016, it expires.

We usually see the use tax employed to capture tax revenue on large purchases made in another state. Generally, out-state purchases that must be licensed locally (vehicles, i.e.) are immediately subject to the use tax when licensed. Missouri use tax is due after out-state purchases total more than $2,000 yearly.

The Marketplace Fairness Act (MFA), currently languishing in Washington, will expand state taxing authority if it becomes law. It would make businesses responsible for collection and remittance of taxes on out-of-state consumer purchases.

Today, states can only tax consumers who reside within their borders. This "physical presence standard" ensures that businesses taxed by states are able to express their approval or displeasure with state tax code through elections, referendums, etc.

Internet purchases are currently untaxed unless the business has a physical presence in that state. If the use tax passes in Cape County and the Marketplace Fairness Act is eventually affirmed, all Internet purchases will become taxable. This passage will create a perpetual revenue stream far beyond what will be needed to pay for a new courthouse. If the use tax is not in place by November 2016, the MFA will not apply in Cape County.

This is the hidden issue within the use tax question.

Please vote "no" on the use tax "question" on April 7th.

ESTHER BOHNERT, Jackson