The Kirksville City Council voted unanimously Monday evening to
put a local use tax proposal before voters in November.
The move comes after the Missouri Supreme Court ruled earlier this year that it is unconstitutional for Missouri communities to collect sales tax on out-of-state purchases of motor vehicles, ATVs, boats, trailers and boat motors.
The proposed local use tax would have to be approved by Kirksville voters.
The court ruling means that Kirksville will lose at least $57,000 a year in tax revenue and likely tens of thousands more than that.
The City Council voted 5-0 to put the local use tax on the November 6th ballot.
"What they really want to do is just replace the revenues that they've lost, and this is the only option that they have,â?? said Kirksville City Manager Mari Macomber.
The proposed local use tax would be a 2.25 percent tax to be applied to any tangible personal property you buy outside Missouri.
You would not have to file a "use tax return" unless your total purchases from out-of-state vendors exceed $2,000 in any calendar year.
Macomber said, during their last session, state lawmakers took up the matter that the Missouri Supreme Court ruled on.
Legislators passed House Bill 1329, which was intended to reinstate the sales tax collection on motor vehicles, ATVs, boats, trailers and boat motors purchased outside Missouri.
But, Governor Jay Nixon vetoed the bill on July 12, leaving it up to cities to recover the lost revenues.