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Dardenne Prairie board advances 2.5% use tax proposal to ordinance stage
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Summary
City Administrator Kathy proposed a 2.5% use tax on online purchases to fund police services and street maintenance; the board voted to advance an ordinance for further consideration (4 yeas, 1 no, 1 abstain).
City Administrator Kathy proposed that Dardenne Prairie place a 2.5% use tax on the ballot to raise revenue for police services and street maintenance, and the Board of Aldermen voted to advance an ordinance for further consideration.
Kathy told the board a use tax functions like a sales tax but applies to online and out‑of‑state purchases that are not taxed at local brick‑and‑mortar stores. She said many nearby municipalities in St. Charles County already collect a use tax and that the city is heavily dependent on sales tax revenue. Kathy said the city recently engaged St. Charles County for two additional officers and that those police services increased costs "up over $650,000"; she described rising resurfacing and long‑term street maintenance costs as ongoing budget pressures.
Kathy said the Missouri Department of Revenue estimates about $54,000,000 in purchases would be eligible for a Dardenne Prairie use tax in 2024 and that a 2.5% levy could generate roughly $1,000,000 in additional revenue. She explained vendor systems determine tax applicability by full mailing address, not ZIP code, and noted a separate self‑reporting requirement is triggered only when a buyer’s cumulative annual purchases from an out‑of‑state vendor exceed $2,000.
Board members asked whether the proposed use tax would conflict with an existing half‑cent sales tax dedicated to roads; Kathy said there is no statutory conflict. After discussion, Acting Mayor called for a roll‑call motion to move the proposal forward. The motion was moved by Alderman Johnson and seconded by Alderman Gittemeyer; the city reported the result as 4 yeas, 1 no and 1 abstain, and the motion passed. The item will be placed on the agenda for the second meeting in December for ordinance drafting and formal consideration.
Kathy and other officials framed the measure as a way to restore parity between in‑store and online purchases and to stabilize funding for essential services. The board did not adopt an ordinance at the work session; the vote advanced only the next step of preparing an ordinance for future readings.
Next steps: staff will draft ordinance language and return the item to the board at a subsequent meeting for formal readings and a final vote.
