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Wildwood staff warn city relies on sales tax as Amendment 5 could shift state revenue mix
Summary
City Administrator Lee briefed the committee on Wildwood's revenue mix — no city property tax, dependence on sales- and utility‑receipt taxes, and reliance on the capital-improvement half‑cent — and described how the proposed Missouri Amendment 5 (eliminate income tax) could change local revenue flows; the committee asked the city attorney what information may be shared with residents about the initiative.
City Administrator Lee told the Administration & Public Works Committee on June 2 that Wildwood does not levy a property tax and depends heavily on sales tax, utility gross‑receipts tax and a voter‑approved capital‑improvement half‑cent for municipal operations.
"The city of Wildwood does not have a property tax," Lee said, adding that sales tax collected through the county pool and a public‑safety sales tax are among the largest drivers of the operating fund. He explained that the city retains roughly 2% of the county pool distribution and that a half‑cent capital‑improvement sales tax produces about $3,000,000 annually for eligible infrastructure projects.
Lee flagged a state ballot initiative—Missouri Amendment 5—to phase out the individual income tax and expand consumption‑based taxation. He said Governor Mike Kehoe announced placement of the amendment on the August primary ballot and warned that while the amendment alone might not immediately alter city revenue, follow‑on legislation could change how revenue is collected and distributed. "It is coming quicker than anticipated," Lee said, and noted that the details of implementing legislation are not yet available.
Committee members asked how the proposal might affect the city's police contract. Lee provided the 2026 police‑service contract figure: $5,375,976.77, and noted that the public‑safety sales tax covers less than half of that obligation; members said they want clear communications to residents about the potential local impacts. Council member Dodwell moved that staff investigate with the city attorney what information the city can legally share about Amendment 5; the motion carried.
The committee directed staff to bring any factual, non‑partisan materials and legal guidance back to the council so residents can be better informed about how the potential shift in state taxation might affect local revenues and services.
