Next Meeting October 25, 2022 via Zoom at 6:30pm
Use Tax Steering Committee Agenda - 10/25/22
City of Kearney Question
Election: November 2, 2021
Thank you Kearney Voters!
Informational Meetings: October 20th & 28th - 7:00 PM at Kearney City Hall
YouTube Links : October 20th Meeting, October 28th Meeting
on the Nov. 2, 2021 ballot. A local Use Tax applies to purchases made from out-of-state vendors.
Official Ballot Language
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?”
- Yes 534 (52.15%)
- No 490 (47.85%)
If you are opposed to the question, place an "X" in the box opposite "No."
New revenues generated by a use tax will be dedicated to Police, Pets, Parks, and Pathways. The specific projects these funds will be dedicated to are:
B. Pets: $100,000 will allow Kearney to hire our first animal control officer and equipment.
C. Parks: $200,000 will help in the creation of Hall Park, a park dedicated to our senior community, as well as the addition of new Pickleball courts.
D. Pathways: $150,000 will be dedicated to a Nation Road Sidewalk, from Cottonwood Creek Avenue north to Woodridge Road
I already pay Sales Tax, is this the same thing?
No. The Sales Tax applies to purchases made at retail within Missouri. The Use Tax only applies to purchases made from out-of-state vendors. It’s one or the other, never both. A purchase would not be taxed twice.
The Use Tax is imposed at the same rate as the total local Sales Tax rate, currently three percent (3%). If the local Sales Tax rate is reduced or raised by voter approval, the local Use Tax rate will also be reduced or raised by the same amount.
In 2018, the MO Department of Revenue estimated that Kearney would have received approximately $600,000, if a use tax was in place.
Our local businesses invest in our community, employ our residents, and contribute to local fund-raising events and community projects. Out-of-state vendors currently avoid local taxes, putting local businesses at a competitive disadvantage. A use tax would eliminate the disparity in tax rates collected by local and out-of-state sellers by imposing the same rate on all sellers. Without a Use Tax in place, consumers have an incentive to purchase items from out-of-state vendors, rather than shopping local.
The City relies heavily on revenues from local sales tax to fund basic services. Nationwide, e-commerce sales rose 14.9% in 2019, and represented 11% of total sales. In order to continue to provide the essential services and amenities that our residents expect and deserve, the City must adjust to this trend and modernize its revenue sources.
Yes. Approximately half of all Missouri cities with populations of 2,000 or more already have a Use Tax in place. Neighboring cities with a Use Tax include Liberty, Gladstone, Smithville and Excelsior Springs. Clay County also has a county use tax.
If approved, when will the local use tax go into effect?
April 1, 2022, per Ordinance 1478-2021 filed with Missouri Department of Revenue
Will the Use Tax apply if I buy something from a Missouri vendor or retailer?
No. The use tax does not apply to purchases made by Missouri residents from a Missouri vendor or retailer. The use tax applies to out-of-state vendors.
Now that Amazon is collecting Missouri Use Tax, won’t our city revenue increase?
No. Only cities that have passed a local use tax can expect a revenue increase from Amazon sales.
Are any items exempt from Use Taxes?
Yes. If an item is exempt from state and local sales tax it is also exempt from the state and local use tax.
When will I vote on this Question?
November 2, 2021
The purpose of the Use Tax - Pathways initiative is to provide a funding source for gaps in our sidewalks and trail connections. Filling in these gaps will provide safe routes for kids to walk or bike to school, will better connect neighborhoods to our existing trails and parks, and will allow people to walk along major corridors north-south and east-west through town. The extension of the Nation Road sidewalk south to the Cottonwood Creek subdivision has been identified as a priority project.
Pathways Projects Map
Nation Road Sidewalk Extension Rendering
For more information and details for businesses, visit Missouri Department of Revenue.
Paid for by the City of Kearney, Missouri. Sheila Ernzen, Interim Administrator
100 E. Washington Street, Kearney, Missouri 64060