Unpacking the Use Tax
Published on March 30, 2022
On April 5th, Belton voters will consider four ballot questions in support of community amenities and infrastructure that you, our residents, expect and deserve. Question 4 proposes a local use tax for pavement, pathways, pets and park projects.
The Missouri Department of Revenue calculated that Belton would have received $1.9 million from a use tax in 2020. If voters approve Question 4 and if revenues are as projected, Belton would be able to:
- Widen I-49 to six lanes from 155th to North Cass Parkway
- Make trail improvements
- Develop a sidewalk grant program
- Update the dog park
- Fund a splash pad and make park improvements
- Maintain city services
“The city council approved the creation of an oversight committee to see that funds are spent as promised,” said Mayor Norman Larkey Sr. “The funds generated by the use tax would pay for community amenities and upgrades and maintain existing city services that our residents expect and deserve.”
“Ensuring Belton has a sustainable revenue source us very important,” said Sheila Ernzen, assistant city manager and finance director. “The city must be aware of the ongoing shift of shopping trends from in-store to online purchasing. If the city doesn’t adapt, it will continue to miss out on important revenues that could be used to make improvements to community amenities and infrastructure.”
U.S. e-commerce sales increased 14.2 percent in 2021 over the previous year, accounting for 13.2 percent (up from 11 percent in 2019) of total sales.1
“This situation has become increasingly unfair to our local businesses,” added Larkey. “Belton retailers invest in our community, provide jobs to our residents and many volunteer their time to the Belton community. Our local businesses are at a competitive disadvantage to vendors outside the state who do not pay local taxes. If passed, the use tax would level that playing field.”
The state of Missouri mandates that the use tax rate is always equal to the city’s sales tax rate, which is 3.25 percent. Over 220 cities in the state of Missouri – including our neighbors Peculiar, Grandview, Lee’s Summit, Independence, Kansas City, Rich Hill and Lake Lotawana – already have a use tax in place.
A purchase is never taxed twice. A local use tax only applies to the purchase of goods from out-of-state businesses that are delivered to a Belton address where a sales tax was not charged. The use tax is collected by the out-of-state or online business which remits the funds to the Missouri Department of Revenue.
Make sure to get out and vote on April 5th, 2022. Click here to find your polling location.
1 U.S. Census, Quarterly Retail E-Commerce Sales, 4th Quarter 2021 https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf