Find out about this local ballot issue in Marceline.
While the City of Brookfield, and Linn County itself has a Use Tax in place, the version of said tax for the City of Marceline is up for renewal in the upcoming election. Marceline City Clerk Lindsay Krumpelman estimates that the tax generates approximately $10,000-15,000 per year for the city.
For local car dealer Robert Cupp, the loss of this tax could be detrimental to his business.
“It would not only affect car dealerships, but the City of Marceline as well,” said Cupp. ”People could start shopping out of state for many things, and the city would lose their one percent of sales tax that this revenue brings in.”
The loss of these funds was also discussed by City Manager Rich Hoon.
“That would have a huge impact on our general fund,” said Hoon. “Think about what that could buy. That equates to roughly the Street Department's General Repairs and Maintenance budget or 25 percent of their capital outlays for the 16-17 budget year. When I think about those funds being cut from a budget the size of the City of Marceline’s, that concerns me.”
A use tax is levied with a consumer makes a purchase out of a specific geographic area, and is charged tax in their home location when they return with said purchase. This use tax is estimated to keep local dollars in the area, by discouraging the purchase of vehicles, boats, motors or trailers outside of the area.
So what caused this to even be an issue? A Missouri Supreme Court decision in the case of Craig A. Street vs. the Missouri Department of Revenue overturned Missouri’s Use Tax. As a fix for this loss of revenue, the Missouri Legislature agreed in 2013 that each individual county and/or municipality should pass their own use tax.
Cupp estimated, through figures presented to him by an auto dealers association to which he belongs, that auto dealers pay an estimated $900 million in state and federal taxes. These same estimates also guess that these same dealers provide 15 percent of the local tax base to the communities in which they are located.