County seeks use tax to shore up revenues

Butler County residents will see a use tax measure on the November ballot once again, something county commissioners said is vital to continued operations.

The proposed use tax would equal 1-1/4% on out-of-state internet purchases, officials have said, and would generate up to a half million dollars annually.

The tax measure has been on the county ballot twice before.

“This will be the third time for us. The city’s had it about six times,” said Presiding Commissioner Vince Lampe.

“At the county, we’ve always been beat,” he said, noting a 20% yes vote on the tax is the best he could recall.

The city of Poplar Bluff will not put the issue on the Nov. 2 ballot.

“At this time, we will not,” said City Clerk Nevada Young.

“We’re leveling the playing field. That’s what we’re trying to do,” said Eastern District Commissioner Butch Anderson.

Anderson said the use tax is not a new tax and will not effect those who shop locally.

“If you don’t shop the internet, it won’t cost you anything,” added Lampe. “We’re just trying to collect what’s due to us.”

As of now, no sales tax is collected on out-of-state internet purchases, something the commissioners said has dramatically cut revenue in recent years. The rate is set at the same sales tax paid in brick and mortar local businesses.

Currently, internet purchases are estimated at up to 15% of all sales and are continually increasing, Lampe said.

“The out-of-state internet sales put all our local businesses at a disadvantage and is putting them out of business,” Lampe said.

While internet sales with no tax collections have increased, local operating expenses also have increased.

“We need it for our government buildings. We need it for our roads. The list goes on and on,” said Lampe. “We’ve got buildings and stuff that are deteriorating, and every time we lose a mom and pop store (because of the surge in internet shopping), that’s money we’re losing.”

The county’s courthouse is 95 years old, Lampe said, while its newest building, the Justice Center, was built in 1995.

“I think it’s something people need to stop and think about,” he said.

Lampe cited an example of a need for funding in the prosecutor’s office.

“Our prosecutor, I’m working with him to try to get an assistant prosecutor just to work on child abuse and child neglect charges. I think that’s a big thing,” Lampe said.

Even maintenance expenses, Western District Commissioner Boots LeGrand said, are increasing as tax funding is going down.

“When you look at expenses, rock is not as cheap, and equipment is going to go through the roof,” LeGrand said.

Labor costs also continue to rise.

“I know people aren’t interested in this, but prices of labor will go up,” LeGrand added. “We scrape to get money for our employees, and it is going to go up, and we’re just not going to have any. (Employees aren’t) going to like it whenever they don’t get what they want.”

Since the COVID-19 pandemic started last year, LeGrand said, the county has been aided by substantial federal funding, but that will dry up.

“Things right now are OK because we’ve got all this stimulus money. When it’s gone, it’s going to cause a problem,” LeGrand said.

Approximately 131 cities in Missouri and 60 counties have passed a use tax, the commissioners reported.

“Wayne County lost its Walmart, but they passed a use tax, and that’s what’s keeping them going,” Lampe said.

Editor's note: This article originally appeared on www.darnews.com on Sept. 28, 2021.