USE TAX WILL BE ON THE BALLOT

Voters at the Aug. 6 primary election will be voting on whether to reinstitute something called a use tax. The proposed use tax, equal to the sales tax and levied on out-of-state purchases, would replace a portion of a statewide tax struck down earlier this year by the Missouri Supreme Court. Last month, Gov. Mel Carnahan signed into law legislation allowing municipal and county governments to seek voter approval for collecting the use tax locally. Voters in Cape Girardeau will be asked to approve a tax of 1.75 cents, in Jackson 1.5 cents and in Cape County 0.5 cent.

The use tax was originally imposed to make up for sales tax revenue lost on out-of-state purchases. Inasmuch as purchases below $2,000 annually are exempt under the new legislation, the tax primarily applies to large commercial and business buyers making purchases from out-of-state vendors. The statewide tax was in place until the state high court struck it down in March, owing to inequities that have since been addressed by the new law. As Jackson city manager Steve Wilson put it: "It's a tax that's been in place. It doesn't affect the average guy. It doesn't affect the guy who orders from L.L. Bean." Or as Cape Girardeau County's presiding commissioner, Gerald Jones, said, "It's just like a sales tax for out-of-state purchases. It levels the playing field" for local merchants and suppliers.

This may be one form of tax that tax-wary voters are ready to approve.