On April 5th, voters in the City of Moscow Mills will have a ballot question pertaining to a Use Tax. The purpose of the proposal is to assess the same tax rate on out-of-state purchases as local purchases. Below are some frequently asked questions.
What is a local Use Tax?
A Use Tax is a tax on the purchase of goods by Missouri residents from out-of-state vendors. Products exempt from the sales tax would be exempt from the Use Tax.
I already pay sales tax. Is this the same thing?
No. The sales tax applies to purchases made at local retailers in Missouri while the Use Tax applies to purchases made from out-of-state vendors. Purchases can not fall into both groups and can not be taxed twice.
How can a Use Tax benefit my community?
As internet purchases increase, local revenues decrease. Funds generated from the Use Tax can be used for vital municipal services including public safety, additional sidewalks and parks, and emergency equipment.
What is the rate of the Use Tax?
The local Use Tax rate is the same rate as the local sales tax rate. If the local Sales Tax is reduced or raised by voter approval, the local Use Tax shall also be reduced or raised by the same action.