Parkville voters on Tuesday will consider imposing a 1.5 percent local use tax on the use of “tangible personal property purchased from out-of-state vendors.”
In Parkville’s case, that would mean cars purchased across the state line in Kansas, said Steve Berg, Parkville city treasurer.
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The Missouri Supreme Court last year decided that local governments like counties or municipalities no longer could charge sales tax on vehicles purchased out of state. If a Missouri resident bought a car in Kansas, for example, that buyer would not be subject to a local sales tax.
As a result, some Missouri counties and municipalities are facing declines in tax revenues. If approved, the ballot measure would allow Parkville to collect a tax on such purchases.
“A lot of places already had such ordinances on the books, but there a were also a lot of municipalities that did not,“ Berg said.
The revenue generated, according to the ballot measure’s language, would help fund basic municipal services such as police, as well as streets and parks maintenance.
The ballot measure requires a simple majority for approval, Berg said.
Voters in other municipalities and counties across Missouri will be considering similar ballot measures.