City of Bland, Missouri
Frequently Asked Questions About the Local Use Tax Ballot Measure
What is a local use tax?
A local use tax is a tax on certain purchases made from out-of-state or online retailers when the seller does not collect the local sales tax at the time of purchase. Missouri law allows cities to ask voters to approve a local use tax so that qualifying remote purchases are treated similarly to purchases made from local businesses.
Is this a new tax?
The local use tax does not create a new type of tax. It applies to eligible purchases from remote sellers under Missouri law when local sales tax would otherwise not be collected.
Why is this measure on the ballot?
The City of Bland is asking voters whether the City should adopt a local use tax. Missouri law requires voter approval before a city can impose a local use tax.
Will this increase the City’s sales tax rate?
No. Approval of the measure does not change the City’s local sales tax rate. Instead, it allows the City to collect tax on eligible purchases from remote sellers as authorized by state law.
Why do some communities adopt a local use tax?
As online and remote shopping has increased, purchases that may not generate local sales tax can reduce revenue that cities have traditionally received from local retail sales. A local use tax allows eligible remote purchases to be taxed in a manner similar to purchases made from businesses located in the community.
How would the revenue be used?
If approved, revenue from the local use tax would become part of the City’s general revenue and may be used for lawful municipal purposes, such as maintaining streets, supporting public safety, improving infrastructure, parks, and other city services, as determined through the City’s annual budgeting process.
Who pays the local use tax?
The tax applies to eligible purchases from remote sellers as provided under Missouri law. Not every purchase is subject to the tax, and exemptions that apply under state law continue to apply.
What happens if the measure is approved?
If a majority of voters approve the measure, the City may begin collecting the local use tax in accordance with Missouri law and the implementation schedule established by the Missouri Department of Revenue.
What happens if the measure is not approved?
If the measure does not receive majority voter approval, the City will not impose a local use tax, and eligible remote purchases will continue to be handled under existing law.
Where can I learn more?
Residents may contact Bland City Hall or visit the Missouri Department of Revenue for additional information about Missouri’s local use tax laws and remote seller requirements.
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