Good­man Con­sid­er­ing Use Tax To Im­prove In­fra­struc­ture

McDonald County Press - - FRONT PAGE - Sally Car­roll

Good­man of­fi­cials are hop­ing to be able to place an op­tion to vote on a use tax on the April 2019 bal­lot.

Al­der­men ini­tially con­sid­ered plac­ing the is­sue on the Au­gust 2018 bal­lot, but have de­cided to pos­si­bly place it on the April bal­lot in­stead and re­al­ize a great deal of sav­ings.

Pineville cur­rently has a use tax in prac­tice. Ac­cord­ing to the Mis­souri De­part­ment of Rev­enue, Pineville’s use tax for Jan­uary through March 2017 was 1.5 per­cent.

Items val­ued at more than $2,000 and pur­chased out­side the county but used in the county can be tagged for pay­ing a use tax. The use tax is fun­neled back to the city for use.

Good­man of­fi­cials say lo­cal res­i­dents won’t have an in­crease in taxes but will ben­e­fit from the ex­tra funds that can help pay for in­fra­struc­ture needs.

Good­man Mayor Greg Rich­mond said he be­lieves in­form­ing res­i­dents about the use tax and what of­fi­cials are try­ing to ac­com­plish will re­sult in a fa­vor­able vote. “It doesn’t cost res­i­dents any more,” Rich­mond said.

Ac­cord­ing to the Mis­souri De­part­ment of Rev­enue, a use tax is “im­posed on the stor­age, use or con­sump­tion of tangible per­sonal prop­erty in this state.”

While the state use tax rate is 4.225 per­cent, cities and coun­ties may im­pose an ad­di­tional

lo­cal use tax. The amount of use tax due on a trans­ac­tion de­pends on the com­bined (lo­cal and state) use tax rate in ef­fect at the Mis­souri lo­ca­tion where the tangible per­sonal prop­erty is stored, used or con­sumed, ac­cord­ing to in­for­ma­tion on the Mis­souri De­part­ment of Rev­enue web­site. Lo­cal use taxes are dis­trib­uted the same way as sales taxes.

Un­like sales tax, which re­quires a sale at re­tail in Mis­souri, use tax is im­posed di­rectly upon the per­son that stores, uses or con­sumes tangible per­sonal prop­erty in Mis­souri, the MDR says. Use tax does not ap­ply if the pur­chase is from a Mis­souri re­tailer and sub­ject to Mis­souri sales tax, ac­cord­ing to MDR.

On April 3, 17 cities and coun­ties in Mis­souri asked vot­ers to ap­prove a use tax.

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