Voters asked to approve pair of questions on ballot
There are a pair of questions that Wright County voters are being asked to approve when they take to the voting booths on Tuesday, April 7.
Proposition U in Mountain Grove for the Use Tax
During the past several years, multiple towns like Mountain Grove have been unable to get voter support for a local use tax when on the ballot.
The push from local municipalities to get voter approval is to allow them to collect sales tax not currently being collected by out-of-state or online vendors like Amazon.
The local use tax is the same rate as sales tax and both taxes cannot be collected on the same purchase. This is where some confusion comes in for voters as the phrase itself looks like voters would be approving an additional tax, which is not the case. Funds generated from the local use tax could then be used like the funds collected from local sales tax.
This revenue would help put more dollars towards public safety, road maintenance and much more.
With a statewide use tax of 4.225% already in place, local cities and counties can only collect their portion of the tax if local voters vote “yes” on a local use tax measure.
With the hopes of getting Mountain Grove residents to vote “yes,” Councilman Dale Atchison previously proposed a measure where a “yes” vote on a local use tax would officially reduce the City’s existing local sales tax rate from 3% to 2.875%.
A similar approach was taken years ago when City voters eliminated a property tax in order to approve a sales tax increase at the same time.
“What that means is anyone who shops in the City of Mountain Grove will save money due to the use tax (being approved),” said City Administrator Dakota Bates in a past interview.
The Citizens Advisory Board (CAB) of Mountain Grove held an informational meeting on the Use Tax on Jan. 15.
Stuart Haynes, Missouri Municipal League Director, shared a video presentation and answered questions from those in attendance. CAB is providing lunch for a Town Hall at 11:30 a.m. on April 2 at the Glenn and Ytoka Kemper Senior Center in Mountain Grove.
The discussion is on Proposition U, the use tax, which will be on the upcoming ballot.
The ballot language reads, “Shall the City of Mountain Grove impose a local use tax at the same rate as the total local sales tax rate, provided that if the local sales tax rate is reduced or raised by voter approval, the local use tax rate shall also be reduced or raised by the same action?
If this proposition is approved, the City’s General Fund Sales Tax rate will be reduced by one-eighth of one percent (1/8%), lowering it from one percent (1.00%) to seven-eighths of one percent (7/8%), and thereby reducing the total local sales tax rate from three percent (3.00%) to two and seven-eighths percent (2.875%). The reduction shall become effective concurrently with the effective date of the local use tax.”
With majority vote passage, the use tax shall “become effective on the first day of the second calendar quarter after the Director of Revenue receives notice of adoption from the City.”
Wright County Question
Voters living throughout Wright County are being encouraged to vote “Yes” on the Wright County question that appears on the Tuesday, April 7 ballot as a way to show their support for first responders, fire departments, police departments and 911. Passage would make funds accessible for the County’s budget, which includes emergency services.
The ballot language asks “Shall Wright County eliminate the real estate and personal property tax levy and impose a sales tax rate, provided that if the local sales tax rate is reduced or raised by voter approval, the local use tax rate shall also be reduced or raised by the same action.”
A “yes” vote will allow funds to be accessible, providing some needed revenue to the County that can be used towards budgetary items that includes law enforcement and more.
Supporters are quick to point out that a use tax is not a new tax. They also say the use tax rate will always be the same as Wright County’s tax rate of 1.875%. Also, buyers will never pay both a local use tax and sales tax on the same transaction.
Wright County Emergency Communications Center Director Jeff Holman will be talking more on the issue at the scheduled CAB Town Hall on April 2.
On that same day at 1 p.m., Holman will be speaking at the Grovespring Senior Center on the issue.
