Greenwood board OKs first reading to place use-tax measure on April ballot to fund roads

The Greenwood Board approved the first reading of an ordinance to place a use-tax question on the April 7, 2026 ballot that, if adopted by voters, would impose a use tax equal to the city's local sales tax rate on purchases stored, used or consumed in Greenwood.

Steven, the city administrator, told the board the tax targets out-of-state and online purchases — —It's a tax against online sales for out-of-state purchases,— he said — and would prevent an unfair advantage for sellers who do not collect Greenwood sales tax. He said the board intends to dedicate the revenue to road improvements and future capital projects.

The board passed first reading on a 3—0 vote. The ordinance text as read references state statutory authority for municipal use taxes (the transcript cites sections 144.6 through 144.761, RSMo); a second reading will be scheduled at a subsequent meeting before the measure would be placed on the ballot for voter approval. Steven told the board the city will develop a pavement-condition index to prioritize work and pair engineering cost estimates with the tax forecast.

On expected revenue, Steven said the city anticipates a meaningful boost to street funding and estimated a range of roughly $200,000 to $400,000 annually if the measure is approved. Board members said neighboring municipalities already use a similar tax and that Greenwood needs additional recurring revenue to expand street maintenance beyond the current program.

Next steps: the ordinance will return for second reading and a formal vote of the board. If the board approves it and the measure is certified for the ballot, voters in Greenwood will decide the use-tax question at the April 7, 2026 election.