Goodman officials are hoping to be able to place an option to vote on a use tax on the April 2019 ballot.
Aldermen initially considered placing the issue on the August 2018 ballot, but have decided to possibly place it on the April ballot instead and realize a great deal of savings.
Pineville currently has a use tax in practice. According to the Missouri Department of Revenue, Pineville's use tax for January through March 2017 was 1.5 percent.
Items valued at more than $2,000 and purchased outside the county but used in the county can be tagged for paying a use tax. The use tax is funneled back to the city for use.
Goodman officials say local residents won't have an increase in taxes but will benefit from the extra funds that can help pay for infrastructure needs.
Goodman Mayor Greg Richmond said he believes informing residents about the use tax and what officials are trying to accomplish will result in a favorable vote. "It doesn't cost residents any more," Richmond said.
According to the Missouri Department of Revenue, a use tax is "imposed on the storage, use or consumption of tangible personal property in this state."
While the state use tax rate is 4.225 percent, cities and counties may impose an additional local use tax. The amount of use tax due on a transaction depends on the combined (local and state) use tax rate in effect at the Missouri location where the tangible personal property is stored, used or consumed, according to information on the Missouri Department of Revenue website. Local use taxes are distributed the same way as sales taxes.
Unlike sales tax, which requires a sale at retail in Missouri, use tax is imposed directly upon the person that stores, uses or consumes tangible personal property in Missouri, the MDR says. Use tax does not apply if the purchase is from a Missouri retailer and subject to Missouri sales tax, according to MDR.
On April 3, 17 cities and counties in Missouri asked voters to approve a use tax.General News on 05/03/2018
Print Headline: Goodman Considering Use Tax To Improve Infrastructure