Audio: The “Use Tax” that will appear on April 6th ballot in Trenton explained

Hand dropping ballot in voting box
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A use tax will be on the City of Trenton ballot on April 6th. If approved, the use tax would be 2.625%, which is the same amount as the city’s sale tax.

Trenton Third Ward Council Member Cathie Smith explains the use tax is a sales tax that would be applied to internet sales. It would be charged against out-of-state sales. She says that, in general, if a business has a nexus or location in Missouri, it does not apply.

There would not be any additional cost to an individual if calendar year purchases are less than $2,000, and residents would not be double-taxed.

The use tax would be reported once a year to the state. Smith comments that it would depend a lot on honesty.

 

 

Smith says if the local sales tax went up or down, the use tax would do the same.

She states there is currently an “uneven playing field” for local businesses, and the city wants to try to “level that playing field.” Persons who buy things online have not been paying the city sales tax, which she explains puts local businesses at a disadvantage.

 

 

Smith notes residents also go to local businesses when they want to ask for help from non-profits.

Trenton wants to stay current with their lifestyles. Smith provides an example of a similar situation.

 

 

City Administrator Ron Urton acknowledges that local sales taxes have been higher for the past year and believes the city was not adversely affected by the pandemic for a couple of reasons.

 

 

Smith adds that if the use tax is approved by a simple majority on April 6th, the money collected would go to general revenue for general operation and services. That includes the police force, streets and roads, and fire protection.


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