City leaders will go back to voters Tuesday with a request to pass a use tax on internet purchases from out-of-state vendors.
The tax failed by 12 votes in 2017.
It would be equal to the 2.25 cents sales tax paid on purchases from brick-and-mortar businesses. Purchases could fall under a use tax or a sales tax, but not both.
"In simplest terms, a local Use Tax is placed on goods purchased out of state and delivered to and for use in Poplar Bluff. The use tax is applied in lieu of local sales tax and is applied to the same type of products that are subject to a traditional sales tax at the same rate," said city manager Mark Massingham.
About 45 percent of the city's general fund revenue comes from sales tax, he explained.
As Poplar Bluff experiences and prepares for additional growth, it results in higher cost in general operations such as emergency services, including police and fire protection, as well as street maintenance, cemetery maintenance and other citizen services, he said.
"Revenues generated by a use tax will be used to offset the continued cost increases with general operating expenses in providing quality citizens services," Massingham said.
The city has eliminated positions since 2016 in an attempt to balance its budget, including a police officer, two street department workers and members of administration.
"As online sales increase from our citizens, less money comes to the city in sales tax. As sales tax decreases so do services provided to its citizens. Less street repairs, less mowing at the cemetery, fewer police officers and fewer firefighters," he said.
This is not a general internet tax, Massingham cautioned.
"Cities do not have the authority to present an internet tax to the voters. There is no such thing as a tax that taxes you just for getting on the internet," he said.
More than 140 Missouri cities have already passed a use tax.