Residents could see a ballot measure in August from the city of Poplar Bluff and Butler County asking for what some officials are calling a "survival tax."
The Poplar Bluff City Council will vote Monday on whether or not to put a use tax before voters in the Aug. 8 election. Butler County commissioners are also expected to decide on the matter before the end of May.
A use tax is a tax on internet and catalogue purchases from out-of-state vendors, as well as out-of-state vehicle purchases, city manager Mark Massingham said at a recent city council meeting.
The tax would be equal to the sales tax paid at businesses located within the city or county.
"There is no sales tax that goes to the cities unless they have a use tax in place," Massingham said of internet purchases. "In my opinion, this is not fair to the local merchants, the brick and mortar places that are required to charge sales tax."
A significant portion of the city's operating budget comes from sales tax, making this decision crucial for future operations, according to Massingham.
The city saw sales tax growth of less than 2 percent in 2016, he said.
The first four months of 2017 have seen a sales tax decrease of 2.5 percent for the same period last year, Massingham reported.
He attributes the losses, in part, to growth of untaxed internet purchases.
The use tax represents a survival tax, Massingham believes.
"If less and less sales tax comes to Poplar Bluff ... At some point, we will not be able to employ the police and fire we need, streets will go unprepared," he said.
Council members Ron Black and Susan McVey agreed the use tax is needed, speaking during the April 17 council meeting.
It is not fair for local retailers to be at a disadvantage, Black said.
Communities across the street are dealing with the same problems, McVey added.