On April 3
rd
the City of Ozark is placing an important question on the ballot called a “Use Tax.” It is important that you educate yourself about what this is, how it may or may not impact you, how it will impact your community, and why it is on the ballot now.
What is a Use Tax?
A use tax is the same as a local sales tax (2.375%) which is collected when an on-line purchase is made from an out of state vendor.
Why Now?
The State of Missouri has declared that all municipalities must seek voter approval, before November 2018, to reinstate the motorized vehicle sales tax or lose general fund revenue source. The City of Ozark, like most municipalities in Missouri, has been collecting this local sales for over 40-years.
The increase in on-line shopping continues to create an unfair advantage for out-of-state vendors and a disadvantage for our local retailers. As this trend continues, and it certainly will, a use tax serves to close the gap for our local retailers by allowing Ozark to apply our 2.375% local sales tax on out-of-state (on-line) sales so that local revenue is increased to pay for local public services.
How will this Impact our community?
If the local sales tax on motor vehicles is not reinstated it is estimated that the City of Ozark will lose $300,000. This local sales tax has been collected for over 40-years, is a vital current source of revenue for the City, and goes into the General Fund which primarily fund those public services in departments of Public Safety (P.D.) Streets, and Parks. A reduction in this revenue would certainly result in a reduction of public services in these departments.
How may this Impact Me?
If you are buying items on-line from Missouri retailers outside of the City of Ozark this will NOT change anything and therefore will NOT impact you. If you are shopping at local stores inside the city limits of Ozark this will NOT change anything and will NOT impact you at all.
You will only pay the 2.375% local use tax for an on-line purchase if that out-of-state vendor has a “presence” in Missouri. You will NEVER pay BOTH a Use Tax and a Sales Tax (local tax rate is the same for both at 2.375%) as you are only charged one or the other depending on whether you purchase it locally or from out of State.
Again, the two primary purposes of this question being placed on the April 3
rd
ballot is so that the City of Ozark doesn’t lose the existing revenue that it has been collecting for over 40-years and to level the playing field for our local businesses competing with out of state on-line vendors. We would like to discuss this topic in more detail with you and are offering the following opportunities to do that. If ever you have any questions and would like to discuss these matters personally with me, Steve Childers, City Administrator, I am happy to schedule an appointment with you or your group to give a presentation and answer questions.
Respectfully
Steve Childers
