On November 7, 2017 voters of the City of St. John will have the opportunity to vote on Proposition “U” which is a sales tax imposed on the purchase of goods by Missouri residents from out-of-state vendors.
USE TAX HISTORY “Since 1959 a state Use Tax has been imposed on the storage, use, or consumption of tangible property in this state. State statutes permit cities in Missouri to “ask its’ voters to approve a city Use Tax on out-of-state purchases equal to the city sales tax applicable at local stores.” Currently, there are over 100 cities in Missouri who have a local Use Tax.
IS THIS JUST ANOTHER SALES TAX? No. Unlike a sales tax, which requires a sale at a retail outlet in Missouri; a Use Tax is imposed directly upon the person/business that stores, uses, or consumes tangible property in Missouri. A Use Tax does not apply if the purchase is from a Missouri retailer and subject to Missouri sales tax.
WHAT WOULD BE THE RATE OF THIS TAX? The local Use Tax rate would be 1.25%. This is the same rate as the current local sales tax.
WHEN WOULD A USE TAX BE APPLIED? Purchases subject to a Use Tax include tangible personal property that is purchased by residents from phone, catalog, or internet vendors from out of state. The Use Tax is simply a local tax applied to purchases made from out of state vendors. A Use Tax is paid predominantly by businesses.
HOW IS THIS USE TAX COLLECTED? The Missouri Department of Revenue requires out of state vendors having a “direct connection” in Missouri (offices, warehouse, employees, or delivery by USPS) to collect and remit the Use Tax. If the out of state vendor does not collect the Use Tax, the individual purchaser is then responsible.
HOW/WHEN TO FILE A USE TAX RETURN? A purchaser must file a consumers Use Tax return only if the cumulative purchases subject to Use Tax exceed $2,000 in a calendar year. The due date is April 15th of the year following the purchases subject to Use Tax.
WHY THE NEED FOR A USE TAX AND HOW WILL THE REVENUE BE USED? Consumer’s spending habits are changing. While mail/phone/internet sales are increasing, retail shopping outlets sales are decreasing. As a result, local and county sales taxes are negatively impacted. These much needed sales taxes are essential for the City of St. John to continue providing the quality professional municipal services we have all grown accustomed to. A Use Tax will compensate for the loss of sales taxes from retail outlets.
A VOTE FOR PROPOSITION “U” IS A VOTE FOR: Continued Quality Municipal Services Fiscal Responsibility Maintaining Property Values Hiring, Training, Retaining Quality Employee
PLEASE VOTE ON NOVEMBER 7, 2017
The Future Of Our Community Is Dependent Upon The Support Of Our Community