Callaway County voters will see a familiar ballot measure when they hit the polls Tuesday.
In January, the county commission voted again to place a use tax measure on the ballot. The measure failed in the August 2014 election with 57 percent of voters casting no. At the time, Presiding Commissioner Gary Jungermann said statewide tax measures and lack of education on the use tax hurt the measure's chances.
Commissioners have pushed for the use tax leading up to the April election, meeting with various community and civic groups to give explanation on the purpose of a use tax. They're hoping for a different result.
If the use tax measure passes, Jungermann said the county will be able to maintain the sales tax revenue that it could lose if the measure fails. According to a Department of Revenue estimate from 2011, Callaway could see a deficit of $125,000.
A 2012 Missouri Supreme Court decision in Craig A. Street v. Department of Revenue determined local governments cannot collect sales tax on out-of-state purchases on large items such as vehicles, all-terrain vehicles (ATVs), boats and technology, etc. The court stated, however, a use tax could be collected for those purchases if voters gave the OK.
The Missouri legislature then voted to allow local governments to collect sales tax on out-of-state purchases until November 2016, providing what Western District Commissioner Doc Kritzer described as a "temporary fix."
"(The use tax measure) is about keeping the dollars we currently have after that ruling was made," Kritzer said.
Commissioners have stressed the use tax is not an additional tax. After the November 2016 extension, the sales tax drops on out-of-state purchases being used in the county, but the use tax would replace that sales tax loss. The use tax would be the same rate as the sales tax at one percent. People buying within the county will still pay the sales tax and the use tax will not apply to their purchases.
"...If we pass a use tax, it's not a double tax," Jungermann said. "It's going to be identical to the one percent sales tax, but if the sales tax applies (within county lines) then you have to pay sales tax like always. But if the use tax does apply and you bring back (a purchase) here to use here in Callaway County, then you're going to pay the one percent use tax."
As a taxpayer, Jungermann said he understands the desire to save money, but as an elected official, he knows the challenge of satisfying the county's needs with less money.
"There's a revenue loss (if the measure doesn't pass)," he said. "And, that's what we're trying to avoid is to peruse the revenue we are currently getting. It's going to be up to the voters to decide."
Not only could buying out of state hurt county revenue, Jungermann said, but he also believes it damages local business.
"One, local government doesn't get revenue it's always gotten since 1946," he said. "Two, it's not fair to the local Ford dealer, or Chrysler dealer, or ATV dealer, or boat dealer. It's not fair to our local businesses because they're competing against companies that can sell you something and you're going to save money by going there. ... There's a lot to this story. It's more than just the county losing revenue. It's also our local vendors who also may be selling the same thing, but they can't compete now, and there's nothing they can do about it, short of trying to sell you something cheaper out of pocket."
According to ballot language, any additional revenue generated by the use tax will go toward public safety, which includes but is not limited to the Callaway County Sheriff's Office, county jail operations and the prosecuting attorney's office.
Holts Summit is the only local government entity that has a use tax, according to Jungermann. The City of Fulton placed a use tax measure on the ballot in August, like the county, but it also failed 810-480. Fulton residents will not see a city use tax measure on their ballots.
Ballot language states a use tax return will not be required to be filed by people whose out-of-state purchases do not exceed $2,000 in any calendar year.