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Greenwood council approves second reading; use-tax question to go to April 7, 2026 ballot
Summary
On second reading the Greenwood council approved placing a 2.5% use-tax proposal on the April 7, 2026 ballot, which the city says will tax most out-of-state online purchases and direct revenue to infrastructure and road work; the motion passed 4-0 on second reading.
The Greenwood City Council approved second reading of an ordinance to submit a 2.5% use-tax question to voters at the April 7, 2026 general election.
A council member read the ordinance language that would allow the city to impose a use tax "at the rate equal to the total local sales tax in effect" for purchases stored, used or consumed in the city, citing the statutory authority referenced in the ordinance reading. After a motion and second, the council recorded "Motion passes 4 0 on 2nd reading," and the question will be placed on the April 7, 2026 ballot.
Staff explained the use tax would apply to many online vendors and is intended to level the playing field between brick-and-mortar stores and online sellers. "That revenue goes to the Department of Revenue, comes back to the city, provides us with monies that we use for our infrastructure, improve roads and put together a better road plan for the citizens," a staff member said. Officials said collections would likely begin about one quarter after adoption of the question, meaning revenue would be available to expand road work in 2027.
Council members said neighboring municipalities have adopted similar taxes and that outreach (public workshops and informational mailings) will be planned in January and February to inform residents before the vote.
Votes at a glance: The ordinance passed second reading 4-0 and will be placed on the April 7, 2026 ballot. Separately, Resolution 2025-105 authorizing building-permit scanning was approved earlier in the meeting.
Next steps: staff will plan public information sessions on the proposal and coordinate ballot language and timelines for implementation if voters approve the measure.
