Use Tax FAQs
Frequently Asked Questions Answered
What is the Use Tax?
The Use Tax is a way to collect sales tax on purchases made from out-of-state vendors and delivered to Madison County. This ensures fairness by capturing sales tax revenue that would otherwise be lost, similar to the sales tax collected on in-state purchases. Products exempt from the sales tax would be exempt from the Use Tax.
Why are we considering a Use Tax?
As internet purchases increase, local revenues decrease. Madison County faces a growing budget gap of over $200,000.00 for Emergency 911 services. This is because our E-911 was funded through a tax on landlines. However, landlines are becoming obsolete and thus we have a deficit. The Use Tax provides a sustainable way to generate additional revenue and invest in crucial services like infrastructure, and public safety.
What will the Use Tax be used for?
The Use Tax revenue will be dedicated and earmarked for improving roads and bridges in the City of Fredericktown, and funding Madison County Emergency 911. Currently the E-911 is operating at a $200,000 deficit. This is largely due to the loss of funds generated from the tax of landlines, which are now becoming obsolete. We are committed to transparently using this revenue for the benefit of our community.
How will the Use Tax affect me?
The Use Tax primarily applies to online purchases from out-of-state vendors, not everyday essentials purchased in Madison County like food, gas, utilities, etc. So the impact on your budget will be minimal.
I already pay sales tax. Is this the same thing?
No. The sales tax applies to purchaes made at local retailers within Missouri., while the Use Tax applies to purchases made from out-of-state vendors. Purchases cannot fall into both groups and cannot be taxed twice.
What is the Use Tax rate percentage?
The local Use Tax rate is the same rate as the local sales tax rate, which is 2.5% for the City of Fredericktown and 2.5% for Madison County. 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.
Is the Use Tax fair?
The Use Tax ensures fairness by collecting existing sales tax that would otherwise be lost on out-of-state purchases. It creates a level playing field for local businesses and helps fund essential services that benefit everyone in the community.
What happens if the Use Tax is not passed?
If the Use Tax is not passed the City and County will experience continued revenue decreases for infrastructure needs, making it more difficult to address our aging infrastructure, including streets, sidewalks, curbs, bridges and Emergency 911.
How is the tax collected?
The online or catalog vendor will collect the local use tax, along with the state use tax, and remit both to the Missouri Department of Revenue (MoDOR).
How can I get more information?
We encourage you to visit the website mocities.com for comprehensive information, FAQs, and resources.
Thank you for your interest in the Use Tax! Your participation is crucial for building a stronger Madison County.
The Use Tax is a way to collect sales tax on purchases made from out-of-state vendors and delivered to Madison County. This ensures fairness by capturing sales tax revenue that would otherwise be lost, similar to the sales tax collected on in-state purchases. Products exempt from the sales tax would be exempt from the Use Tax.
Why are we considering a Use Tax?
As internet purchases increase, local revenues decrease. Madison County faces a growing budget gap of over $200,000.00 for Emergency 911 services. This is because our E-911 was funded through a tax on landlines. However, landlines are becoming obsolete and thus we have a deficit. The Use Tax provides a sustainable way to generate additional revenue and invest in crucial services like infrastructure, and public safety.
What will the Use Tax be used for?
The Use Tax revenue will be dedicated and earmarked for improving roads and bridges in the City of Fredericktown, and funding Madison County Emergency 911. Currently the E-911 is operating at a $200,000 deficit. This is largely due to the loss of funds generated from the tax of landlines, which are now becoming obsolete. We are committed to transparently using this revenue for the benefit of our community.
How will the Use Tax affect me?
The Use Tax primarily applies to online purchases from out-of-state vendors, not everyday essentials purchased in Madison County like food, gas, utilities, etc. So the impact on your budget will be minimal.
I already pay sales tax. Is this the same thing?
No. The sales tax applies to purchaes made at local retailers within Missouri., while the Use Tax applies to purchases made from out-of-state vendors. Purchases cannot fall into both groups and cannot be taxed twice.
What is the Use Tax rate percentage?
The local Use Tax rate is the same rate as the local sales tax rate, which is 2.5% for the City of Fredericktown and 2.5% for Madison County. 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.
Is the Use Tax fair?
The Use Tax ensures fairness by collecting existing sales tax that would otherwise be lost on out-of-state purchases. It creates a level playing field for local businesses and helps fund essential services that benefit everyone in the community.
What happens if the Use Tax is not passed?
If the Use Tax is not passed the City and County will experience continued revenue decreases for infrastructure needs, making it more difficult to address our aging infrastructure, including streets, sidewalks, curbs, bridges and Emergency 911.
How is the tax collected?
The online or catalog vendor will collect the local use tax, along with the state use tax, and remit both to the Missouri Department of Revenue (MoDOR).
How can I get more information?
We encourage you to visit the website mocities.com for comprehensive information, FAQs, and resources.
Thank you for your interest in the Use Tax! Your participation is crucial for building a stronger Madison County.
Vote YES on the Use Tax!
Date: Tuesday, April 2nd
Time: 6am - 7pm
Date: Tuesday, April 2nd
Time: 6am - 7pm
Where do I vote?
|
St. Michael's Auditorium
304 W Main St Fredericktown, MO 63645 |
Marquand City Hall
201 S Harding St Marquand, MO 63655 |
