Voters will see county use tax measure again come April

The Callaway County Commission voted Tuesday morning to place a use tax measure on the April ballot.

This will be the commission's second attempt to pass a use tax for Callaway County - the measure failed in August with 57 percent of voters saying "no." Presiding Commissioner Gary Jungermann said statewide tax measures, such as Amendment 7 which would have increased sales and use taxes to fund transportation projects, hurt the chances of a use tax measure passing in Callaway. He also said a lack of education on what a use tax is and the negative connotation associated with the word, "tax" probably also lead to the measure's defeat.

Commissioners stressed Tuesday that a use tax is not an additional tax. When people make large purchases for cars, all terrain vehicles (ATVs), boats, technology, etc., out of Missouri, the state cannot collect the sales tax from those purchases. The Missouri Supreme Court determined this with a 2012 decision in the case Craig A. Street v. Department of Revenue. The court also stated, however, a use tax could be collected for the users of those cars, ATVS, boats and other items bought beyond Missouri state lines. Purchases from out-of-state vendors that do not exceed $2,000 in total in any calendar year will not require a use tax return, according to ballot language.

"The purpose of the proposal is to eliminate the current sales tax advantage that non-Missouri vendors have over Missouri vendors," ballot language states.

If passed, the use tax will be collected at the same rate as the local sales tax at one percent, and could save the county from losing between $125,000-$130,000 per year, according to a 2011 figure given to the commission from the Department of Revenue. Jungermann said that's nearly equivalent to two Callaway County Sheriff's Deputies - including salaries, benefits, worker's compensations, vests, fuel for vehicles and more.

The purpose of a use tax, the commission said, is about maintaining a steady budget that allows it to provide services to county residents.

"We have to continue to keep providing services to the public, and not only do they expect it, they deserve it," Jungermann said. "But with that, it costs money."

Hypothetically, a county use tax could bring in more money to the county, but that won't be known until after the measure passes. In the ballot language, the commission has designated any revenues from the use tax go to public safety efforts, which includes but is not limited to: the sheriff's department, jail operations and the prosecuting attorney's office.

The county's 2015 budget allowed for three additional personnel for public safety purposes - an investigator and deputy in the sheriff's office and another assistant prosecuting attorney. A steady increase in crime rates caused the commission to grant the new positions. In 2009, the sheriff's office responded to 11,413 calls, compared to 17,164 at the end of December 2014, according to Clay Chism with the sheriff's office. Prosecuting Attorney Chris Wilson said felony cases tried in Callaway jumped from 591 in 2013 to 917 in 2014.

Jungermann called the new hires a "huge commitment by the commission." He added that the positions, though budgeted for with confidence, could be further solidified by additional dollars from a use tax.

More than 3.7 million is budgeted for public safety, including $1.6 million for the sheriff's office, $1.2 million for county jail operations, $600,000 for the prosecuting attorney's office and $176,000 for the juvenile office, according to the county's 2015 budget.

"...There's a major expense there that we're trying to cover, and everything helps," Western District Commissioner Doc Kritzer said. "We're just trying to keep from losing revenue. That's what this is all about - trying to preserve revenues that people have been paying for over 50 years ... People have been paying this until seven people on the Missouri Supreme Court decided to interpret the law differently."

Specifying potential use tax revenues go to public safety may give the ballot measure an advantage at the polls, the commissioners agreed.

"The advantage is the fact that people like to see where their money is being spent. That's the advantage - if you want to call it that ...because if I think (revenue) is really dedicated to something, I'm more apt to agree," Eastern District Commissioner Randall Kleindienst said.

In preparation for the August 2014 ballot, the commission hosted informational meetings for local government leaders and the public. Some weren't well attended. One meeting at Fulton High School, lead by Brian Schmidt of Missouri Wonk - a policy analysis and consulting company, was attended by about 12 people, including the commissioners. Kritzer said the commission will hold meetings again this year in hopes of advancing use tax education, and he plans to also attend meetings with civic groups such as the Rotary, Kiwanis and Optimist clubs. Jungermann said he is willing to come speak to various groups, such as church organizations. The commission can be reached at (573) 642-0737 to schedule a meeting.

Of the 114 counties in Missouri, Kritzer said voters in 57 said "yes" to a use tax, as required by legislation. The commission must pass the measure by November 2016, according to state law. If the measure passes after that time, the county might not be able to preserve funding, Jungermann said. Cities must pass use tax measures independently from the county.

The city of Fulton also attempted to pass a use tax measure in August 2014, but it was defeated with 810 "no" votes compared to 480 "yes" votes. Fulton's City Administrator Bill Johnson said Tuesday night the city will not include a use tax measure on the April ballot. Kritzer said he is not aware of any other cities in Callaway planning to do so.