Title
An Ordinance calling an election to authorize the imposition of a Use Tax for general revenue purposes at a rate equal to the current sales tax rate of 2.25% in the City of Lee's Summit, Missouri.
(Note: First reading by City Council was done on January 7, 2020. Passed by unanimous vote.)
Body
Issue/Request:
At the December 17, 2019 City Council meeting, staff provided "Use Tax" informational presentation to the Mayor and City Council and received direction to "prepare an Ordinance with the proposed Use Tax ballot language for the April 7, 2020 election."
Proposed City Council Motion:
I move for adoption of an Ordinance calling an election to authorize the imposition of a Use Tax for general revenue purposes at a rate equal to the current sales tax rate of 2.25% in the City of Lee's Summit, Missouri - with language incorporated that communicates the intent to appropriate revenues in the same proportion as the four components of the sales taxes.
Key Issues:
The State Law indicates that the use tax shall be at the same percentage amount as the local jurisdiction’s sales tax. If the local jurisdiction raises or lowers the percentage of the sales tax, in accordance with State Statutes, the corresponding Use Tax will also change. The City's current sales tax is 2.25%. The following is the proposed schedule necessary to place the use tax on the April 7, 2020 ballot:
* January 7, 2020 - 1st Reading of Ordinance
* January 14, 2020 - 2nd Reading of Ordinance
* January 28, 2020 - Final Certification due to Jackson County Election Board
The State of MO already collects a Use Tax. Based upon their collection from eligible economic Use Tax activity, the City of Lee's Summit would have collected approximately $1.85M in calendar year 2018. If the City Council continues to distribute the Use Tax funds in a similar manner as our local sales tax, the revenues would be assigned as follows:
General 1 cent $821,502
Transportation 1/2 ...
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