Neosho council approves sending 3% local use-tax question to Aug. 5 ballot

The Neosho City Council voted unanimously to approve Council Bill 2025-35 and submit a local use-tax question to voters at the Aug. 5, 2025 election, the council announced at its meeting.

The ordinance, read into the record by a council speaker, would impose a local use tax at the same rate as the city—s total local sales tax — 3% — and specifies that the use tax be adjusted by the same amount as any future change to the city sales tax. The ordinance cites Missouri Revised Statutes sections 144.46 through 144.761 and 144.757 as the enabling law.

Mayor Davidson, during council discussion, framed the measure as a response to declining local revenues caused by a shift of purchases to online and out-of-state sellers. "The city continues to receive less revenue because of the movement of purchases to online sources," Davidson said, adding that the lost revenue funds core services including public safety and roads.

An unidentified council member told colleagues staff had been directed to provide a bill number for a use tax on the August ballot and that the city attorney drafted the ordinance for council review. Another council member noted the county is placing a similar question on the same ballot at a lower rate, which the council was aware of during the discussion.

Council members also cited staffing pressures in emergency services. One speaker said the city had lost "approximately 50-plus employees" across police and fire over the past two years and raised concerns about pay and benefits since a 2020 increase. "We—re still trying to determine how we can keep our public safety, keep our police and fire here," the speaker said.

A motion to approve sending the question to the ballot was made and seconded; in a roll-call vote the following members voted "Yes": Councilman Cobb; Mayor Davidson; Councilwoman Humphrey; Councilwoman Thomas; and Councilman Wortman. The motion carried and the measure will appear on the Aug. 5, 2025 ballot.

The ordinance text published at the meeting sets the ballot question and the 3% rate; procedural questions about implementation and specific revenue allocations were discussed but no formal amendments or allocation decisions were made at the meeting. The council adjourned after recording the vote.

Next steps: the council approved only the submission of the question to voters; any change to tax rates or specific spending allocations would require further council action if voters approve the measure.