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Local Use Tax Explained
A yes vote keeps your money here!
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You will NOT be “double taxed”.
a use tax is a sales tax applied to the purchase of goods by Missouri residents and businesses from out-of-state vendors. It is NOT a new tax, and You will NOT be “double taxed”. It mirrors the amount of sales tax you are already paying locally. The amount of use tax due on a purchase is equal to the sales tax rate in effect at the point of delivery. 62 counties and nearly half of all Missouri cities with populations of 2,000 or more already have a use tax in place.
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The Estimated tax on this Purchase from amazon is $15.35
It was Purchased online from Willow Springs If you purchase this same item at a local store today, you WILL pay the exact same amount of tax.
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The Sales Tax rate in Mountain Grove is 9.1 %
Sale price of the item $207.07 State Portion = $8.75 County Portion = $3.88 Mountain Grove = $6.21 Total Actual Tax $18.84 State portion = 4.225% County Portion = 1.875% Mountain Grove = 3.000% With a Local Use Tax in effect, this amount (total of $6.21) will remain in the city where the item was purchased.
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$6.21 This collected revenue remains where the item was ordered and delivered. Its first “USE” after being purchased. The revenue generated from the local use tax can be allocated to fund street repair, new fire equipment, hiring a new police officer, or other services for the community.
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It is undetermined how much revenue the USE TAX could
generate, but with increasing online sales and purchases from entities such as Amazon (40% of all online purchases in 2017) it promises to be beneficial to local communities.. The City of St. Joseph, MO predicted $700,000 per year to be generated by a local Use Tax if passed. Their Use Tax generated $4,500,000 which the city used to resurface 20 miles of roads in 2017. Most cities adopting the idea have grossly outperformed pre ballot estimates with similar results.
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IF You are already paying tax on items purchased online…
That money is going somewhere… A Use Tax would ensure it stays in our community.
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On Local USE TAX supports local businesses and vital city services.
A “YES” vote On Local USE TAX supports local businesses and vital city services.
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