Carl Miller, the 31st voter in Ward 4, picks up his ballot Tuesday morning for the city of Poplar Bluff's use tax election.
DAR/Paul Davis
Voting has started on the only ballot item before voters in Butler County today, a use tax for the city of Poplar Bluff.
All five city wards can vote on the measure through the closing of polls at 7 p.m. About 35 votes had been cast by 8 a.m. in Ward 4, one of the city's largest wards.
Results will be posted on the Daily American Republic's website as soon as they become available, likely before 8 p.m.
Detailed information will also appear in the Wednesday edition of the DAR.
For more on the use tax, see our article:
Poplar Bluff city officials will again ask voters on Tuesday to approve a use tax, a measure they say would help support struggling budgets.
The ballot measure asks residents to allow the city to collect sales tax on certain online purchases in the same way sales tax is collected at a local brick and mortar business.
The proposal has been before voters previously, coming as close as being just 12 votes shy in 2017.
“The use tax is very complicated to explain,” city manager Mark Massingham said. “Some people think every time they get on the internet they are going to pay a tax. That is not the case.
“The only tax they would pay is 2.25% if they purchase something on the internet, such as Amazon or other out-of-state vendors.”
Other communities in the area, including Doniphan, Naylor and Piedmont, have already approved the tax.
It is meant to help compensate for the loss of retail sales at brick and mortar locations as internet purchases increase, officials have said.
“With all of the growth in Poplar Bluff, we are only seeing an average of 2% growth in sales tax each year,” Massingham said. “The more online purchases that are made hurts the local economy and our local merchants.
“The passage of the use tax would level the playing field for the local businesses that contribute to our community.”
Amazon and out-of-state vendors contribute nothing to Poplar Bluff, he continued, predicting online sales will keep increasing.
That means local sales tax is going to decrease, Massingham said.
“Sales tax makes up 45% of the general fund budget revenues,” he explained. “If the sales tax does not grow or decreases, then cuts to departments will have to be made, and our police, fire and street departments are already shorthanded.
“The city has had to use general fund reserves to keep services current but we are at the point where we can no longer use reserves.”
The city’s Capital Fund, which can only be used for equipment, vehicles and building projects is in great shape, Massingham said.
“All of the use tax would go to general fund, which is where it is needed,” he said, adding there are 186 cities in Missouri that have passed a use tax.
A use tax is applied to the same types of items as a sales tax would be charged at brick and mortar businesses. The use tax does not expand the list of transactions that incur a sales tax, according to information provided to voters by the city.
A total of 8.725% sales tax is charged in most areas of Poplar Bluff currently. This sales tax rate would not change. The use tax applies only to certain types of internet purchases.
The local sales tax is divided as follows: 4.225%, state; 1%, Butler County; 1%, transportation development district, located in some areas of the city; .25%, Poplar Bluff Municipal Library; and 2.25%, city of Poplar Bluff.
The 2.25% will go to the General Fund for the city of Poplar Bluff, officials said.
The police departments budget makes up 40% of the general fund expenses, Massingham said. The fire departments budget makes up 20% of the general fund budget, and the street departments makes up 10% of the general fund budget.
The use tax is the only item on Butler County ballots on Tuesday. It will be voted on in Poplar Bluff’s five city wards.
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