Election Choices: Jamesport places use tax on ballot

The Jamesport City Council approved placing an ordinance regarding the use tax on the April ballot during a meeting last December. City Clerk Shelley Page reported the use tax is in regard to internet sales tax.

Jamesport is hoping to get a use tax in place in order to benefit from legislation making its way down from the federal government, to the state, to local governments. If passed, only states or local municipalities with a use tax in place would benefit from such legislation.

Missouri Gov. Mike Parson said in December of 2018 that he wants to enact a law enabling the state to collect millions of dollars of new tax revenue from out-of-state retailers who sell to Missouri residents.

In an interview with The Associated Press, the governor said there is no definitive plan yet for the potential new revenue; it could help propel other aspects of Parson’s agenda to boost infrastructure funding and workforce development.

The U.S. Supreme Court opened the door for states to rake in greater online sales tax collections in a June ruling that upheld a South Dakota law. That decision overturned a decades-old precedent stating that businesses without a physical presence in a state — such as a store, office or warehouse — didn’t have to collect sales taxes on behalf of the state. In such cases, customers technically were responsible for paying the tax, but most didn’t.

As online commerce has grown, some large retailers such as Amazon already had begun collecting sales taxes for all 45 states that charge them. But others with a physical presence in only a few places haven’t been doing so.

“If we’re going to compete with internet sales, it sure ought to be fair with the brick and mortar businesses that are here,” Parson told the AP. “I think we should collect that, and I think we will eventually collect that.”

Parson said a state law enabling online sales tax collections could generate between $100 million and $150 million annually for the state, though he emphasized those are only estimates.

Missouri charges a 4.225 percent sales tax. But counties, cities, fire and ambulance districts and various other local jurisdictions tack on their own sales taxes.

A tax table available from the Missouri Department of Revenue shows about 2,350 different sales tax rates in Missouri, making it complicated for retailers who sell products throughout the state.

Jamesport’s Use Tax

The use tax, if passed, will immediately only affect purchases on the popular online retailer Amazon, which is participating voluntarily.

The Use Tax does not apply to purchases made by Missouri residents from a Missouri retailer. The Use Tax applies to purchases from out-of-state vendors only. If a Missouri resident buys a product from a Missouri vendor over the internet, the sales tax based on the vendor’s location would apply to the purchase.

The first $2,000 worth of purchases made by an individual annually, which are subject to the tax, is exempt.

If the sales tax rate is reduced or raised by voter approval, the local use tax will follow suit.

A sales tax and a use tax are not the same thing. The sales tax applies to purchases made at retail within Missouri, while the use tax applies to purchases made from out-of-state vendors. Purchases cannot fall into both groups and therefore a purchase would not be taxed twice.

Officially, the ballot states:

“In an effort to eliminate the advantage enjoyed by out-of-state vendors over local vendors, shall the City of Jamesport impose a local use tax at the same rate as the local sales tax rate, currently one and one-half percent (1.5%)?”

Shoal Creek

Shoal Creek Fire Protection District has three questions on the ballot, each dependent on the passage of the other for approval.

Shoal Creek Fire Protection District is seeking incorporation but this will only be approved if voters also approve an ad valorem property tax rate. The property tax rate is $0.30 per $100 assessed valuation.

The new fire district will cover land in five counties, Daviess, Caldwell, Ray, Carroll and Livingston. A petition was filed in the Circuit Court of Caldwell County for the formation of the fire protection district and a hearing was held last December.

The petition was initiated by Braymer Volunteer Fire & Rescue, according to Braymer Fire Chief Farrel Clevenger. Clevenger has been the fire chief at Braymer for five years.

Chief Clevenger said a need for more revenue is the main reason the Braymer Fire Department wants to move away from funding through membership dues and form a tax-based fire district.

Currently, Braymer Fire collects money through dues. The dues are $65 per year and the fire district collects from 310 paying members, which is 78% of the total membership. The money collected from the dues is not covering the cost of maintenance, updating equipment or vehicles, which include engines, grass/brush trucks, tankers, and rescue units.

“The new district takes in the people we already protect in Braymer/Breckenridge,” Chief Clevenger said. “We’re not trying to take anything more than we can protect. It’s pretty much the boundaries we have now.”

Shoal Creek Fire Protection District will vote for one member on the Board of Directors, up to six-year term from a field of eight: Delbert Miller, Ernest Lee Burns, Jerald Wiedmier, Tony Kirkendoll, Scott Burns, Nancy Mallory, Edward Fry, and Phil Clevenger.

Other races

Four school boards will offer contested races at the April 2 General Municipal Election for Daviess County. The positions are for a three-year term and voters will choose two from among the candidates.

Gallatin: Martin Sweatman, Jesse Bird and William V. Irby.

North Daviess: James Duly, Patty Baker and Ruth Lewis.

Pattonsburg: Nathan Woodward, Steven Pankau, Jason Teel and Brooke Johnson.

South Harrison: C.F. Rainey, Jeremy Vanmeter and Terry L. Daniel.

The Village of Altamont trustee position is for a two-year term. Voters will vote for two from a field of three: Harold Anderson, Karia Jones and Ryan Clark.

The Village of Jameson trustee position is for a two-year term. Voters will vote for two candidates from the following: Deeann J. Fisher, Lorriann Fisher, Patricia Baker and James R. Cook.

Jamesport will have a race for mayor this year, which is two-year term. Voters will choose between Rick Shepherd Sr. and Dana R. Urton.

Grand River Township trustee positions are for a two-year term. Voters will vote for one of the following candidates: C. Julie Cox and M. Elaine Bohannon. The Grand River Township director is for a two-year term. Voters will choose two from the following field of candidates: Arvin R. Bunker, Paul J. Caven, Steve Bohannon and Colt Bohannon.

Jackson Township will elect a director for a two-year term. Voters will choose two from the following candidates: Chris Smith Nubby, David R. Leeper and John Wells.

The rest of the races are either uncontested or require a “write in.”