The city of Poplar Bluff will ask voters Tuesday to approve a use tax, which apply to certain out-of-state, online purchases.
It mirrors a sales tax in the same way that residents pay a city tax on purchases made closer to home, officials have explained.
Only a use tax or a sales tax can be charged on a purchase, but never both at the same time, city representatives said in informational meetings held in March.
Here’s a breakdown of other information shared.
__Cost of the tax__
The tax would be the same 2.25% charged on local purchases as a sales tax. This would equal $2.25 on every $100 spent at certain online retailers, such ones that do not have locations in Missouri.
__Generated revenue__
City manager Matt Winters has said the tax could generate about $800,000 annually, similar to what the city of Dexter sees through the use tax it has purchased.
__Why is it needed?__
Online sales continue to increase, officials have said. Winters also shared that inflation and increased operation expenses are impacting the city. This includes an expected $100,000 annual increase in workmen’s compensation costs for the city, increases in the costs of purchases such as fuel and asphalt, and increases in the health insurance premiums.
__How would the new revenue be spent?__
Winters and the current city council have said the following items would be a priority for the new revenue:
• Three new firefighters, increasing the coverage by one firefighter on each of the three shifts. In addition to added protection, Winters said, this type of improvement helps lower the cost of insurance to protect homes and businesses.
• Two new police dispatchers. This will ensure there is always at least two dispatchers covering each shift, he said. Dispatchers handled more than 30,000 calls in 2022, but at least one shift is still staffed by a single person, Winters said.
• Doubling the mosquito abatement program. The current position is half-time, and covers about one-half of the city each day. By increasing the man hours, all of the city would see treatment each day the truck is operational.
• Returning the director’s position at Margaret Harwell Art Museum to full-time from its current part-time status.
• Improving the animal control shelter.
• Improving soccer fields and playgrounds.
__When would the tax take effect, if approved?__
The tax would go into place Oct. 1.
The new budget items would be included in the 2024 budget, Winters said.
Taxes are collected by the Missouri Department of Revenue, which retains a percentage, and then returns the remainder to the city.