Local Use Tax

Ballot Issue for April 3, 2018

HERE IS WHAT THE BALLOT WILL LOOK LIKE WHEN YOU VOTE ON APRIL 3, 2018

Shall the City of Lamar impose a local use tax at the same rate as the total local sales tax rate, currently two percent (2.00%) 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? 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.

[ ] Yes [ ] No

QUESTIONS?

Please call Lamar City Hall at 417-682-5554

What is a use tax?

A use tax is a tax imposed on purchases by Missouri residents from out-of-state vendors that do not have a physical nexus (presence) in or a contract with the state of Missouri. Sales tax is charged based on the location of the seller while use tax is charged based on the location of the buyer. The use tax is applied to and exempt from the same type of purchases as a sales tax. The use tax will also TAKE THE PLACE of the current sales tax on vehicles, trailers, and boats purchased outside the state

of Missouri but licensed in Missouri. Collection

of sales tax on out of state motor vehicles will stop if voters have not approved the use tax by the end of 2018, which results in lost revenue for Lamar. All Missouri cities are faced with this issue, not just Lamar.

Is this a new tax?

No. The city has collected this tax for many years. The question is on the ballot only as a result of the Missouri Supreme Court decision and the state legislation that followed. If the question is not placed on the ballot, or if the tax is discontinued by voters, the tax would cease to be collected beginning January 2019.

What is the percentage? The amount of a use tax for a purchase depends on the combined state and local use tax for the delivery location in Missouri. Lamar’s percentage would be 2.0%, the same as the current sales tax. It is important to remember that the use tax is NOT double taxation and NOT a new tax. If you pay a use

tax you do not pay sales tax and vice versa.

Impact?

Passage of the use tax will not only allow cities to continue to collect the local sales tax on purchased items from out-of-state but will also apply the local sales tax to

many purchases delivered to residents from

out-of-state vendors. Currently these are retail internet, sales taxes being paid, collected, and then remitted to the Sate of Missouri on out of state purchases.

In 2016 an estimated loss of approximately

$10,246.45 would have occurred without a use tax. (Based on data supplied by the Missouri Department of Revenue.)

This brochure was prepared and paid for by the City of Lamar solely to educate and inform residents about a questions that will be presented at the polls on April 3, 2018. It is NOT intended to advocate, support, or oppose the passage or defeat of the measure. Each voter should vote for or against the question

The city of Lamar is here to enhance the quality of life for current and future generations of Lamar residents through strong leadership, effective stewardship and exceptional service.

City of Lamar-A great place to work and a wonderful place to live. Help us maintain and improve our current status and continue having an enjoyable and pleasant small town atmosphere.

Listed below are places to enjoy for all of our community and surrounding area.

Beautiful Parks

Numerous ball fields

City Lake—Fishing

Walking trails

Year round pool access

Camping

Moore Pavilion

 

 

 

 

 

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