The city of Waynesville is feeling hopeful for the April elections thanks to Proposition 1, which will be on its ballot. Prop 1 concerns a Use Tax that the city says could give them an additional $60,000 a year.
Voting yes on Prop 1 won't increase taxes, however, because consumers are already paying the tax. The yes vote will allow the city to collect the money from the state, according to city officials. Waynesville voters can expect to see an informational sheet to explain the issue.
In the meantime, the Daily Guide asked both Waynesville Mayor Luge Hardman and Waynesville City Administrator Bruce Harrill some questions about the tax.
According to Hardman, the money is currently being collected by the state on "internet purchases and out of state vehicle purchases that have to be licensed in the state of MO."
According to the information sheet provided by the city, "The ballot issue would authorize the City of Waynesville to collect their portion of 2.225% from the 4.22% that is imposed by the State on these types of purchases."
Harrill told the Daily Guide that the city thinks the "money currently being collected will stay at the State level and will not go to support the City of Waynesville unless this issue is passed."
The city is estimating that the the Use Tax could bring another $60,000 a year into the city's budget. Harrill said the city based that estimate on "what other Missouri cities our size," that have already passed the Use Tax, are getting annually.
"We used a conservative number based on data from other Missouri cities who have already passed this measure," Harrill said.
The language voters can expect to see on the ballot, according to the information provided to the Daily Guide, will read, "Shall the City of Waynesville impose a local use tax at the same rate as the total local sales tax rate, currently 2.225%, provided that if the local sales tax rate is reduced or raised by voter approval, the lo- cal use tax rate shall also be reduced or raised by the same ac on? A use tax return shall not be re- quired to be led by persons whose purchases from out-of-state vendors do not in total exceed two thousand dollars in any calendar year."
The ballot language will ask voters to vote yes or no on the issue. The city is hoping voters will vote yes.
In anticipation of questions concerning the tax the information sheet prepared by the city includes answers to questions such as explanations as to what a Use Tax is, whether it's the same as a sales tax, and what the city plans to use the money to fund.
Harrill and Hardman both said the city plans to use the money to fund paving and repairing roads, as well as storm water drainage issues.
"Approximately $40,000 a year would go to support road paving projects in Waynesville and approximately $20,000 would support our Parks and Storm Water issues in the City," Harrill said.
Waynesville residents will be voting on the issue on April 3 and the city wants to encourage voters to understand the issue before making a decision.