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Neosho City Council approves placing 3% use tax question on April ballot
Summary
The Neosho City Council voted 6–0 to place a local use tax question on the April 8, 2025 ballot that would impose a 3% local use tax at the same rate as the city's sales tax to capture online and out‑of‑state retail sales.
Neosho City Council voted unanimously to place a local use‑tax question on the April 8, 2025 ballot.
City staff introduced Bill 2024‑108, which would ask voters to authorize a local use tax at the same rate as the city's total local sales tax (3%) on retail sales subject to Missouri statutes. City staff explained the measure is intended to align taxation of out‑of‑state and online vendors with local brick‑and‑mortar businesses.
“[The ballot language] attempts to eliminate the unfair advantage enjoyed by out of state vendors over local vendors,” a staff presenter said during the reading of the ordinance. Council members clarified that while the ballot language does not specify online sales only, much of the anticipated revenue would come from online purchases and other out‑of‑state transactions, including some vehicle purchases. City staff said the council will undertake a community education campaign before the election.
Councilmember discussion focused on messaging to the public and on examples of how out‑of‑state online sales affect city infrastructure costs. The council approved the motion to put the question on the ballot by a vote of 6–0. The ordinance references Missouri Revised Statutes sections governing local use taxes and prescribes ballot language and implementation mechanics should voters approve the measure.
Next steps: the measure will appear on the April 8, 2025 ballot and staff will begin public education about what the tax covers and how revenue may be used.
