Cape Council puts tax issues on April ballot; approves TIF district

Cape Girardeau city voters will decide the fate of two tax issues when they go to the polls April 5.

The City Council voted Monday night to place the issues on the ballot. Final approval of the election ordinances is slated to occur in January.

The first ballot measure would allow the city to retain the vehicle sales tax. The second would enact a use tax on items bought out of state, primarily by businesses. The use tax would be levied at the same 2.75 percent rate as the vehicle tax.

City officials haven't determined specifically what would be funded with the tax dollars, but Mayor Harry Rediger said after the meeting the council will develop a list of projects that would be funded. Rediger said city officials plan to establish a list of projects next month.

City manager Scott Meyer said city officials still are trying to determine exactly how much money would be raised from a use tax. Once that is determined, a specific list of projects will be spelled out, he said.

City council members have suggested in recent weeks the tax dollars could provide funding for public safety and park improvements. Among other things, it has been suggested some of the tax revenue could fund the hiring of more police officers.

Councilman Wayne Bowen said there is a need for additional revenue for law enforcement.

"You should never be enthusiastic about a new tax," he said. But in this case, the public-safety need warrants such a tax, he suggested.

Councilman Mark Lanzotti pointed out the first measure would not be a new tax but an extension of an existing sales tax. The sales tax on vehicles purchased out of state generates about $200,000 annually for the city. That revenue would be lost if voters don't extend it, city officials said.

The proposed use tax would apply to items bought out of state.

Cape Girardeau County levies a 1 percent use tax, which was narrowly approved by voters in April. The state of Missouri also levies a use tax.

As a result, Lanzotti said businesses already are accustomed to paying a use tax, so the addition of a city use tax won't be "a new thing."

Councilwoman Loretta Schneider said she favors putting both tax issues on the ballot.

"I do believe separating out the vehicle tax makes it more understandable to people," she said. In other action, the council approved first reading of an ordinance establishing a downtown tax-increment financing district.

The Cape Girardeau Tax Increment Financing Commission recommended approval of the redevelopment plan. Al Spradling, chairman of the commission, told the council, "We believe this is an enhancement that will benefit the city."

The district covers 226 acres, roughly outlined by Sloan Creek and Highway 74 to the north and south, and by Sprigg Street and the Mississippi River on the west and east. Spradling said the district includes 459 parcels.

He said the district is "close to being blighted."

The redevelopment effort would involve public and private projects, he said. Public projects could include sidewalks, signage, landscaping and other site improvements. Private projects could include renovations of deteriorated and vacant buildings into commercial developments.

No new taxes would be levied in the district. Additional tax revenue generated by developments would be used to pay some of the improvement costs.

Rediger said many properties in the district are vacant and need redevelopment.

"This will help developers make that happen," he said.

mbliss@semissourian.com

(573) 388-3641

Pertinent address:

401 Independence, Cape Girardeau, Mo.