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Chillicothe considers use tax: Measure would assist public safety, local economy
(St. Joseph News-Press Via Acquire Media NewsEdge) Jul. 27--CHILLICOTHE, Mo. -- Public safety, equipment and economic development all would see benefit if voters agree to a use tax in the Aug. 5 election.
The measure, if approved, would levy a 2.25 percent local use tax -- the same rate as the existing local sales tax. A use tax is a type of sales tax charged on some out-of-state purchases, such as online sales and mail-order catalog purchases, on which any other sales tax is not levied. For any single purchase that exceeds $2,000 to one entity, a resident or business would need to file a tax return with the state and pay the owed tax.
A use tax is needed to help the city keep growing, said campaign chairwoman Betty Preston.
"We want everyone to think seriously about this," Ms. Preston told the Rotary Club July 18. "Chillicothe's a pretty special place. We do that by supporting local efforts."
Most Chillicothe residents wouldn't perceive the impact of a use tax on their pocketbooks, she added. She estimated that about
5 percent of the city's nearly 9,000 population would feel its effects.
She said proceeds from the levy would be divided as follows: 50 percent for the retention and training of police and fire personnel; 25 percent for equipment in conjunction with city services; and 25 percent for economic development efforts.
Mayor Chuck Haney lamented a lack of funds that stymie Chillicothe's progress.
"Revenues are just not keeping up with expenses," Mr. Haney said. "It's going to take money, and how do you accumulate that?"
Use taxes prevail in 592 Missouri cities and 70 counties. All cities and counties around Chillicothe have a use tax except Grundy County.
"This is not anything new," Mr. Haney said. "A lot of it's through the Internet, we're told."
The use tax would take effect upon passage, Ms. Preston said. Livingston County received a $60,000 check at the end of its first year with a use tax, she added.
A repeal, reduction or increase of the local sales tax would dissolve the local use tax.
Ray Scherer can be reached at rscherer@npgco.com.
To see more of the St. Joseph News-Press or to subscribe to the newspaper, go to http://www.stjoenews-press.com/.
Copyright (c) 2008, St. Joseph News-Press, Mo.
Distributed by McClatchy-Tribune Information Services.
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