Prop U Could Bring $2M Annually to Maryland Heights

26938702387_345a14be43_bDue to the passage of SB 153 signed by Governor Parsons on June 30, 2021, out-of-state and on-line retailers, such as Amazon and Wayfair, must collect state and local use taxes from the online transactions they facilitate. A vote of the people is still required before any municipality can enact a local use tax. Since Maryland Heights does not have a local use tax, the City does not receive the one-half cent sales tax from online purchases like it does for the same purchases made at its brick and mortar businesses inside City limits. However, these online retailers still utilize City resources such as a delivery trucks driving on City streets or local police investigating a stolen package.
Prop U, the proposed Use Tax, will be on the November 8 ballot and will allow voters in Maryland Heights to decide whether the City should receive the same tax of one-half cent (the city’s local sales tax rate) that is already being collected, but not distributed to the City. Some exceptions would apply such as small businesses that make under $100,000 in sales and items purchased for resale. Maryland Heights could potentially receive up to $2,000,000 in tax revenue if Prop U passes. This revenue would be used to continue the same vital services and amenities for residents such as infrastructure improvements, free solid waste services and utility tax rebates.
If Prop U passes, it is important to note that you would never pay the Use Tax AND a Sales Tax. You would only pay one or the other. This tax would apply to out-of-state purchases from both residents and commercial businesses within Maryland Heights. Additionally, nearly 230 other Missouri cities have approved a Use Tax for their municipalities.
Contact for more information and remember to get out and vote on Tuesday, November 8.