Park Hills voters to decide April 7 on Proposition U, a 3% use tax to capture online sales

Park Hills will ask voters on April 7, 2026, to approve Proposition U, a local measure that would apply a 3% use tax to certain out-of-state online purchases, the presenter said.

The presenter said the use tax would apply the same 3% rate that shoppers pay at local Park Hills stores and emphasized that residents would not pay both a sales tax and a use tax on the same purchase. "Proposition U would apply a 3% use tax to certain out of state online purchases, the same rate already paid when shopping locally," the presenter said.

City materials say revenue from the proposed use tax would go into Park Hills' general fund to support police and fire services, street and sidewalk maintenance, parks and stormwater improvements, staffing and operations, infrastructure and equipment. The presenter estimated the tax could generate approximately $450,000 annually for the city, though the presentation did not provide the underlying assumptions for that estimate.

The presenter also noted that more than 280 Missouri cities have adopted use taxes as online shopping has grown, and that the measure is intended to apply the local rate to qualifying out-of-state purchases "to create a level playing field," without raising the tax rate charged to local businesses.

If voters approve Proposition U, any new revenue would be allocated through Park Hills' normal budget process, with final spending decisions made by the city's regular budgeting procedures. For additional information, the presenter directed listeners to parkhillsmo.net.

The vote on Proposition U is scheduled for April 7, 2026.