February Newsletter

Remember to Vote April 3rd

On April 3rd, 2018, Ozark voters will decide the following ballot issue regarding a local USE TAX. This is the language you will see on the ballot:

Official Ballot Language

Shall the City of Ozark, Missouri impose a local use tax at the same rate as the total local sales tax rate, currently 2.375%, provided that if the local sales tax rate is reduced or raised by voter approval, the local use tax rate shall also be reduced or raised by the same action? A use tax return shall not be required to be filed by persons whose purchases from out-of-state vendors do not in total exceed two thousand dollars in any calendar year.

[ ] Yes

[ ] No

If you are in favor of the question, mark the box opposite ‘YES’. If you are opposed to the question, mark the box opposite, ‘NO’.

Frequently asked questions about the local use tax:

What is a local use tax?

The local use tax is applied, in lieu of the local sales tax, on transactions that individuals and businesses conduct with out-of-state vendors, including catalog and direct market sales. The use tax will always be charged at the same rate as the local sales tax.

Why is this tax on the ballot now?

As mandated by the state, if not approved by the voters before November 2018, the EXISTING local sales tax collected for out-of-state vehicle sales will be eliminated. The City has collected a sales tax on vehicles, boats, and trailers purchased out-of-state for over 40 years.

According to the Department of Revenue the city will lose an estimated $300,000 in its annual budget. These revenues primarily support city services in the departments of public safety, public works and parks.

Why is this important to Ozark businesses?

The local use tax levels the playing field for local businesses who are required to charge and/or pay local sales tax.

Currently, by not charging the local use tax, out-of-state companies have an advantage over our local businesses. And, as online sales increase, local businesses and City budgets stand to see reduced revenues from this loophole.

How does this impact Ozark business owners?

If you are an Ozark business who sells items through a catalogue or online store, the use tax does NOT mean you would have to begin collecting use tax on those sales. The use tax is only applied to purchases from out-of-state vendors (with a nexus in Missouri) if the item is shipped to Missouri.

The use tax is a way of applying our existing sales tax to those not currently required to pay it. The City would be able to collect a use tax on online, catalog or other direct sales from out-of-state businesses that also have a physical presence in the state (Walmart, Target, Amazon, etc.)

Do other Missouri cities have a local use tax? YES

Approximately half of all Missouri cities with populations of 2,000 or more already have a local use tax in place, including Springfield, Fremont Hills, Kimberling City, and Willard. The City of Nixa and Christian County are asking voters the same question on the April 3, 2018 ballot as well.

What if I vote YES?

An existing sales tax collected on vehicles purchased out-of-state will continue, keeping in place $300,000 in revenue that Ozark has relied on for over 40 years.

Ozark would begin to collect the local use tax at the same rate as the local sales tax on purchases made from out-of-state businesses, estimated to be $120,000 in new revenue.

The amount of local sales tax you pay on local purchases stays the same.

What if I vote NO?

Ozark will lose revenue from existing out-of-state vehicle sales, resulting in a reduction of $300,000 annually to the city budget.

Ozark will not collect a local use tax on purchases made from out-of-state

Sales volumes at local retailers could continue to decline as online sales increase, which could jeopardize the future of Ozark retailers and further cuts to city services.

How much annual revenue does Ozark expect to lose if sales tax on out-of-state vehicles purchases does not continue?

$300,000 currently collected on vehicle sales tax revenue which is equivalent to:

Six (6) Police Officers (includes: salaries, benefits and training),

OR 1.03 miles of new trails,

OR 2.4 miles of asphalt overlay on city streets

How much annual revenue does the city expect to generate from the local use tax?

An estimated $120,000 in new revenue which is equivalent to:

Three (3) police cars,

OR 6,000 feet of sidewalk,

OR the entire park maintenance budget (salaries, services, equipment, & mowing)

What types of items does the use tax apply to?

A use tax is applied to the same types of items as the sales tax. The use tax does not expand the list of products which incur a sales tax. The use tax applies to out-of-state transactions that will be shipped to Missouri.

Amazon/Online Sales

In February of 2017 Amazon volunteered to begin collecting the Missouri State use tax, in place since 1959, on purchases by Missouri residents. Ozark residents currently pay 4.225% to the state on purchases from Amazon. The state does not provide any of their revenue collected from online sales to the City of Ozark. Ozark may only collect 2.375% (equivalent to current sales tax rate approved by voters) from orders shipped to Ozark addresses IF voters approve the tax.

If you buy things from out-of-state vendors which do not have a nexus or ‘direct connection’ (such as a sales representative or store) in Missouri, you will not pay the use tax on those transactions. If you never buy anything from out-of-state which has to be shipped to Missouri, you will never pay any use tax.

Other questions/Speaker Requests:

If you have other questions or would like to arrange for a speaker to present educational information to your group, please email spayne@ozarkmissouri.com . More information visit our website at www.ozarkmissouri.com

This educational information was provided and paid for by:

City of Ozark, Missouri

Mayor Rick Gardner

PO Box 295

Ozark, MO 65721

Ozark, Nixa and Christian County working together

Show Me Christian County board hires Andrea Sitzes as Executive Director

Christian County, MO – The Board of Directors of Show Me Christian County, also known as the Christian County Business Development Corporation (CCBDC), is pleased to announce the hire of Andrea Sitzes as the first Executive Director for the newly founded organization. Sitzes brings over 9 years of customer service, marketing, and business development skills to this non-profit dedicated to the economic development of Christian County. The Board’s action comes with the fullest confidence that Sitzes will be an excellent steward of the CCBDC mission and a leader and advocate for our communities. “The Board recognizes that Sitzes is a leader who, with several years of experience at the Ozark Chamber of Commerce, is the right person to pursue the interests and support of the members of the CCBDC,” says Board President Scott McDonald.

Founded in 2017, the CCDBC exists to grow the business community within the county by supporting existing employers and small businesses, fostering the establishment of start-ups, and recruiting new businesses to the area. By developing Christian County’s business community, we hope to contribute to community betterment and social welfare. The municipalities of Christian County, the County itself, and local businesses have committed resources to establish the CCBDC towards the aim of hiring an experienced economic developer to work as the Executive Director of the organization for the benefit of the entire county.

Ozark Mayor Rick Gardner says Ms. Sitzes is an excellent fit for the mission, “The CCBDC is truly excited to have Andrea join us as our Executive Director. She has demonstrated her skills and passion for the Ozark area during the past two-plus years as the Ozark Chamber Director and the CCBDC is confident these will carry over seamlessly to our organization. In addition to already being involved in Ozark's economic development activities, she has prepared herself for this job by participating in regional economic development professional development activities.”

“The City of Nixa is excited to participate in the CCBDC. We believe partnering with local businesses and our neighboring communities in Christian County for economic development will benefit us all,” says Nixa Mayor Brian Steele. “Andrea has the skills, experience, and personality we need to fulfill the goals of that partnership. She brings a strong background in business retention & expansion, workforce development, and business attraction. We look forward to working with her to improve the business environment across the county.”

“Christian County is proud to be represented on the board and the initiative has the full backing of the Christian County Commission,” says Ray Weter, Christian County Presiding Commissioner.

“I am humbled and honored to lead Christian County into the next era of growth,” says Sitzes. “From our schools to our businesses and amazing people, our county has the qualities necessary to be a driving force in our state's economy. Public and private organizations are working together like never before. Show Me Christian County (CCBDC) is about fostering an attitude of collaboration and alignment to ensure that our area is a top competitor in innovation, business attraction, retention & expansion, and workforce development. Serving the people of Christian County is my passion and I am blessed that our efforts will impact the future.”