Festus officials are asking voters on Nov. 4 to approve a use tax that would allow the city to charge its 3-cent sales tax on internet purchases. Revenue from the tax would benefit the city’s police, fire and dispatching departments.
The measure, called Proposition Public Safety, requires a simple majority vote to pass.
If approved, residents would be charged the city’s 3-cent sales tax on items they buy online, just like they would be charged when shopping at stores and other brick-and-mortar retailers.
The following is the ballot language for the proposition: “Shall the city of Festus impose a use tax at the same rate as the total local sales tax rate (currently at 3 percent) provided that if the local sales tax rate is reduced or raised by voter approval, the use tax shall also be reduced or raised by the same action?”
Festus City Administrator Greg Camp said the measure would not increase the city’s sales tax rate. Instead, it would just allow the city’s existing 3-cent sales tax to be charged on internet purchases.
The overall sales tax rate in Festus is 9.35 cents per $1 spent. Of that, 4.225 cents goes to the state, 3 cents to the city, 1.625 cents to Jefferson County and 1/2 cent to the Joachim-Plattin Ambulance District.
He said the 3-cent tax charged for internet purchases would generate an estimated $600,000 more for the city each year.
Camp said the extra revenue is badly needed to better fund the city’s police, fire and dispatching services.
Festus previously placed similar use-tax propositions on the ballot, but they failed, most recently in April 2022, when it lost 640-843, or 43.16 percent to 56.84 percent.
When the previous use tax proposals were placed on the ballot, the city had not indicated that the additional revenue would be used for public safety. Because city officials have decided to dedicate the potential extra revenue for police, fire and dispatching services, they believe the measure has a better shot at being passed this time around, Camp said.
“The public, our residents, have been very clear that we do a very good job in providing public safety services and they recognize being able to keep police, firefighters, dispatchers trained and equipped is important to them and this is directly that,” he said. “Residents tell us that these are things that are important to them, and in order for us to continue to provide this great level of service, we’re going to need some help.”
Camp said the city needs to improve facilities and equipment and add staff.
“We’re contemplating the construction of a second firehouse,” he said. “We need to renovate the first firehouse. We need to replace our aging ladder truck. We’ve talked about upgrades to our 911 dispatch center. Also, it would be for additional staffing for fire, police and dispatch.
“These are things that we cannot afford right now. I mean, for fire-dispatch-police, we’re pretty much maxed out.”
Camp said he is not aware of any organized opposition to the proposition.
State residents who buy more than $2,000 in untaxed goods and services already are supposed to report that on their state income tax returns.
A state law that went into effect in January 2023 further requires businesses that are not based in Missouri to pay the state sales taxes if they had more than $100,000 in business in the previous calendar year.
However, the 2023 law applies only to state sales tax. Counties, cities and other entities that collect sales taxes must ask their voters to approve a use tax on internet purchases and other out-of-state sales equal to their sales tax rates.
Camp said more than 50 percent of Missouri cities already collect internet sales taxes. Jefferson County and the county’s municipalities have asked voters to approve the tax, but so far the measure has been approved only in Kimmswick, Crystal City and Byrnes Mill.