NewsDecember 8, 2015
Jackson officials considered two taxes that may go before voters in April during the Board of Aldermen's study session Monday night -- including an expansion of its use tax. The first and more likely ballot measure is a continuation of the current use tax, which applies to out-of-state purchases of vehicles, boats, outboard motors, etc...
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Jackson officials considered two taxes that may go before voters in April during the Board of Aldermen's study session Monday night -- including an expansion of its use tax.

The first and more likely ballot measure is a continuation of the current use tax, which applies to out-of-state purchases of vehicles, boats, outboard motors, etc.

City administrator Jim Roach said the tax has brought the city slightly less than $100,000 annually and advocated for its continuation.

Roach said if the tax expired, local dealers would be placed at a disadvantage that could drive consumers -- and sales -- elsewhere.

The second possible measure, which Roach said has been discussed for the last few months, is a use tax on other goods purchased out-of-state, such as items online.

"We think that based on estimates we've received from [Cape Girardeau County treasurer] Roger Hudson and his office, that it would be a couple hundred thousand dollars per year that we're not capturing," Roach said.

Jackson city attorney Tom Ludwig said to get the measures on the April ballot, they would have to be filed by the Jan. 26 deadline. Otherwise, the measures would have to wait to be placed on the August or November ballots.

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"You have to decide whether you want to be a part of that rat race. It's a national election," he told the board.

Although it still is early in the discussion, Mayor Dwain Hahs expressed his support for closer examination of a use tax. He cited surrounding communities such as Perryville and Dexter that have revenues are in the hundreds of thousands of dollars annually.

He said the first course of action should be for the board is to figure out where funds raised would go.

"We need to tell the voters what we would want to do with it," he said, mentioning police and firefighter funding has been discussed but nothing officially.

He pointed out many of the large purchases targeted by use taxes are taxed by the state and county, but not by the city.

Further discussion will take place at the Board of Aldermen's next meeting at 7 p.m. Dec. 21.

tgraef@semissourian.com

(573) 388-3627

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