Macon general sales tax revenue drops over $33,000 in 2018 - Proposed Online Use Tax looks to help with revenue

MACON, MO -- On Tuesday, August 6th, Macon voters have the opportunity to vote on a local use tax.

The simplest explanation of a local use tax is that it is the same as a local sales tax except that it is charged on out-of-state purchases. Only one or the other would be charged, never both, and the tax rate would always be the same rate as the local sales tax. Any purchase that is currently sales tax exempt would also be exempt from the use tax.

Historically, Macon residents have voted to impose local sales taxes as a means to fund vital services (like Police Officers and Firefighters). The use tax is a way of applying our existing voter approved sales tax to those out-of-state purchases that are not required to pay it.

Purchasing trends continue to switch to a greater e-commerce marketplace. Many purchases made online used to be made locally which created local jobs and reinvested in our community and local economy. This change in purchasing trend puts our Missouri and local retailers at a competitive disadvantage and creates a loss in Macon’s sales tax revenue but does not reduce our citizens needs of the Fire Department, Police Department, Street Department, and Public Grounds Department.

According to the city audit, the general sales tax revenue decreased $33,325.76 in 2018 within the city of Macon. Comparing January thru June of 2018 to the same period of 2019, this revenue is already down an additional $27,000. The U.S. Department of Commerce reports that e-commerce sales accounted for $2.3 trillion in 2017 sales and they estimate this number to grow to $4.8 trillion by 2021. In addition, the Missouri Department of Revenue estimates that the City of Macon could bring in as much as $90,331 in use tax revenue if passed by a vote of the citizens.

The State of Missouri has had a use tax in place since 1959 and Macon County passed a use tax in 2013. The City of Macon will receive no use tax revenue unless the use tax is approved by voters. Cities around the area where voters have passed a "Use Tax" include Atlanta (2018), Brookfield (1998), Bucklin (1996), Callao (2018), Chillicothe (2016), Clark (2013), Edina (2018), Hannibal (2015), Huntsville (2013), Kirksville (2013), Memphis (2014), Moberly (2013), New Cambria (2013), Palmyra (1999), Paris (2018), Salisbury (2014), and Shelbyville (2014).

The following is the ballot language of the proposal:

"Shall the City of Macon, Missouri impose a local use tax at the same rate as the total local sales tax rate, currently 2.25%, provided that if the local sales tax rate is reduced or raised by voter approval, the local use tax shall also be reduced or raised by the same action? A use tax return shall not be required to be filed by persons whose purchases from out-of-state vendors do not in total exceed two thousand dollars in any calendar year."

A “yes” vote will be in favor of a use tax and a “no” vote will be in opposition to a use tax. The City of Macon has posted additional information on the website at www.cityofmacon-mo.gov under the “voter information” tab. Feel free to contact City Hall at (660) 385-6421 with any questions. Place your vote on August 6th.