The Lebanon City Council placed a use tax on the April election ballot at their meeting Monday night.
LCR Photo/Steve Smith.
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STEVE SMITH • EDITOR@LACLEDERECORD.COM
The Lebanon City Council voted Monday night to place a use tax on the April 8 election ballot.
According to the ordinances passed by the Council, the use tax will require the same tax rate to be charged on purchases made from businesses located outside Missouri as are charged by businesses in the City of Lebanon and “eliminate a competitive advantage of out-of-state businesses. According to the Sales Tax Institute, a use tax “applies to purchases made outside a taxing jurisdiction but used within the state.”
According to the proposed ballot language, the tax rate will be equal to the total local sales tax rates in effect and will be repealed, raised or reduced in the same amount as any city sales tax.
The ballot language says that funds from the tax will be used for a fire and police training facility, constructing a new animal shelter, assisting with improvements to the Boswell Aquatic Center and other general fund needs.
Outgoing City Administrator Mike Schumacher said it was difficult for any city in Missouri to figure out how much revenue is generated through a use tax.
“I cannot give you a rock solid number. Any city that has tried to estimate it has been way off,” he said.
He said the tax revenue will be split into different funds.
“It’s not a huge deal changer for us,” he said, but he added it would provide a revenue stream for the projects mentioned in the ballot language.
For more on this story, see Wednesday's LCR.