Haskin, Fox push internet sales tax vote

Kenneth Haskin, Cape Girardeau city manager since July, has vowed to have a singular focus over the next seven weeks -- getting a 2.75% use tax, or internet sales tax -- approved by voters on the first Tuesday in November.

"One of the things that struck me when I arrived (in Cape Girardeau) is that the tax is not already in place," Haskin said, in remarks Monday to the city's Parks and Recreation Advisory Board.

"This is a very serious issue (and) we have to get the word out that we've got to capture these online sales taxes."

Haskin promised an informational and marketing campaign this fall to ensure voter approval.

"It's the same rate as the current city sales tax (and) you will never pay a use tax and a sales tax on the same purchase," he said.

Mayor Bob Fox, who announced in August he would seek a second term, added his own remarks, saying he hoped city residents will respond affirmatively to the use tax and noted the electorate's consistent support of the Transportation Trust Fund (TTF).

TTF was originally approved by Cape Girardeau voters in 1995 and has been renewed five times since.

"Our community has supported capital improvements, we're now into TTF 6, but if we don't have the municipal staff, if we can't keep them, we won't operate well," Fox said.

Fox, Haskin, Police Chief Wes Blair, Fire Chief Randy Morris Jr. and public works director Stan Polivick have all recently lamented the difficulty in keeping city employees because of current compensation levels.

Shopping behavior

"COVID has changed the way people shop forever," Fox said.

In concurrence, Haskin said passage of the use tax will "level the playing field" for bricks-and-mortar businesses.

"People go window shopping at a store, then go home and order the same item online," he said.

Haskin painted a troubling picture for the parks advisory board if the use-tax referendum fails.

"If (the plebiscite) goes down, the city will continue to lose employees to higher paying jobs, fees for (city) services will increase and services supported by the general fund will be reduced or eliminated," Haskin said.

Projection

The advisory panel's outgoing vice chairman, Cape Girardeau County Treasurer Roger Hudson, noted the county's use tax, approved in 2017, will bring in $3 million in 2021.

Fox has said previously the city could expect $2.5 million to $3 million annually if voters approve an online sales tax by a simple majority vote.

Fox told advisory board members based on prior municipal elections, he thinks it will take 2,400 "yes" votes to get the use tax approved Nov. 2.

"This is the most important issue I've ever seen facing the city of Cape," Fox said.

"If (the tax) doesn't pass, I'm not sure what we're going to do."