The Parkville Board of Aldermen voted to move forward with placing a use tax proposal on the November ballot, but will need to revisit the ballot language next week due to a change in state law.
The board approved ballot language at the Tuesday, Aug. 17 regular board meeting to meet the Tuesday, Aug. 24 filing deadline with the Platte County Board of Elections. However, state law is due to change, effective Saturday, Aug. 28 after passage of “Wayfair” legislation in Missouri.
The 2018 Supreme Court decision in South Dakota vs. Wayfair, permitted states to mandate that businesses without a physical presence in a state, and meeting certain criteria, can collect and remit sales taxes on transactions in the state. Missouri was the last state to adopt the policies permitted by the Wayfair decision.
The city may petition the circuit court to amend the ballot language shortly after the filing deadline, so the board plans to meet Tuesday, Aug. 31 to approve the clarified language permitted in the new state law.
Currently, the approved ballot language reads: “Shall the City of Parkville, Missouri impose a local use tax at the same rate as the total sales tax rate, currently, two percent (2%), provided that if the local sales tax rate is reduced or raised by voter approval, the local use tax rate shall also be reduced or raised by the same action? Use tax shall not be required to be paid by persons whose purchases from out-of-state vendors do not exceed in total more than two thousand dollars ($2,000.00) in any calendar year.”
The proposed tax would match the local sales tax, which is currently two percent, with the intent to allow local business to better compete with out-of-state outlets.
City officials have talked about instituting a use tax for some time, and earlier this year considered placing a measure on the August ballot. Due to movement at the state level, the board opted to wait.
Platte County itself, Kansas City and Platte City already collect use taxes.
At the Tuesday, Aug. 3 meeting, board members were concerned about the optics of holding a special meeting to place a tax measure on the ballot, with other members noting that the special meeting is only because of the change in state law.
“I just don’t want it to look like we’re trying to do something,” said mayor Nan Johnston.
Alderman Greg Plumb suggested issuing a press release to explain the cause of the special meeting.
Previously, city officials said the communication with residents during the ballot campaign needed to be clear that the use tax would serve as a replacement for regular sales tax on out-of-state purchases.
Officials also suggested clarifying that funds collected would be directed toward city services such as law enforcement and infrastructure.