Use tax on August Ballot

On Tuesday August 8, voters in the City of Cameron will have an opportunity to go to the polls to vote on a use tax on online purchases, it is the only item on the August ballot. 

The ballot states, “In an attempt to eliminate the un-fair advantage enjoyed by out-of-state vendors over local vendors, shall the City of Cameron, Clinton and DeKalb Counties, Missouri impose a  local use tax at the same rate as the total sales tax rate…” It goes on to state the current sales tax rate is 2.5% and if the rate is reduced or raised by voter approval, the local use tax will follow suit. 

The use tax if passed will immediately only affect purchases on the popular online retailer Amazon, who is participating voluntarily. The Federal Government is working on similar legislation called the Marketplace Fairness Act which would enable state governments to collect sales taxes and use taxes from remote retailers with no physical presence in their state, but if passed, only states or local municipalities with a use tax in place would benefit from such legislation. 

A use tax will only apply to those whose out-of-state purchases do not exceed more than $2,000 per calendar year, such as contractors or those who purchase a vehicle from out of state. 

City Manager Mark Gaugh said estimates based on research by the Missouri Municipal League show an estimated loss of $30,000 in civic revenue, which would funnel directly into the general fund to pay for police, fire and public works. 

As a comparison, the 1st year salary of a Cameron Police Officer is $33,000.

Kevin Noel, owner of JP Fashions in Cameron said, “I don’t want to see anyone lose any business, not Amazon or anyone else, but I think it’s only fair, if it’s that convenient in our area. It’s a fine thing.“

Of the proposal being on the ballot, Noel said, “It’s kind of catchy, because they are consumers and they would like to not pay sales tax, maybe, or maybe they think their community deserves it’s share. It’s nice to see something that will tell you how people feel about things.” 

Steve Leibrandt of Leibrandt Jewelry Store said, “It levels the playing field a little bit for the brick and mortar stores who are here when you have issues.”

The use tax is the only item on the August 8 ballot. Polls open at 6 a.m. and close at 7 p.m.