Jefferson City voters will decide whether to implement a use tax in August.
The Jefferson City Council unanimously voted to place the proposed ordinance on the Aug. 7 ballot. The 2-percent use tax would be on out-of-state purchases of taxable items where the purchaser pays the tax instead of the seller.
If approved by voters, 1 percent of the use tax would go toward the general fund, half percent toward capital improvements and half percent toward parks.
Local business owners last month asked the council to implement a use tax to help level the playing field with out-of-state retailers.
If passed by voters, residents would not pay both the use tax and sales tax for the same purchase.
The city could receive about $1.5 million in additional revenue if voters pass the use tax, Jefferson City Finance Director Margie Mueller said previously.
In 2012, the Missouri Supreme Court ruled cities can collect sales tax on out-of-state motor vehicle purchases only if the cities have local use taxes, meaning Jefferson City must either receive voter approval to continue the sales tax on out-of-state motor vehicle purchases or pass a use tax. If the city does neither, it will no longer receive sales tax on out-of-state vehicle purchases, losing about $240,000 annually.
In other business Monday, the council approved the land conveyance agreement that outlines the goals and timeline for the 31.28 Missouri State Penitentiary redevelopment project. The city and state will now work on a quit claim deed to give the city possession of the redevelopment site.
Under the agreement, the city must select a developer within two years of the conveyance and start construction within four years.
The primary uses for the redevelopment site includes hotels, entertainment venues, museums and convention centers. Secondary uses include full-service and fast-casual restaurants, bars, coffee shops and retail establishments that don't exceed 10,000 square feet each. Other uses include parking spaces, green spaces and pedestrian plazas.
The city will also construct the MSP Parkway that would extend Chestnut Street and provide vehicular access between the Lafayette Street cul-de-sac and Chestnut Street.
Not allowed on the redevelopment site include traditional fast-food restaurants, an enclosed shopping mall, and residential uses besides condominium units and loft-style apartments.
The redevelopment area does not include the historical buildings used for the prison tours. The state will keep possession of the historic buildings, including the gas chamber.
Two additional state representatives will also be added to the Missouri State Penitentiary Community Partners for a total of three state representatives. The MSPCP can't recommend a developer or development plan to the council unless it receives approval from two of the three state representatives.
If the city doesn't meet the timeframe goals or develop the site in a way that's consistent with the contract, the state can terminate its agreement.
Gov. Eric Greitens signed over nearly 32 acres of the Missouri State Penitentiary in July after gaining legislative approval.
The city will remove its nine cardboard recycling bins June 15 after New World Recycling terminated its contract with the city. City staff will move the bins to Hyde Park where they can't be accessed. The public will have to use other cardboard-recycling facilities, and residents can use the city's single-stream recycling.
The bins are currently at McKay Park, 1700 Southridge Drive; Memorial Park, 2214 W. Main St.; Fire Station No. 1, 621 W. High St.; Fire Station No. 2, 2400 E. McCarty St.; Fire Station No. 5, 1005 Fairgrounds Road; and the City Hall parking lot, 420 E. McCarty St.