Continuing use tax will support economy

Nevada Daily Mail

The Vernon County Commission is asking voters to vote "no" Tuesday on the use tax, not to prevent a tax but in order to continue one that is being collected currently so the revenue it is bringing to the county will continue.

In 2012, Vernon County first attempted to pass the out-of-state use tax, which keeps in place a 1 percent tax on the titles of vehicles purchased out-of-state, such as cars, boats and trailers. After failing to pass the tax by approximately a 2-1 ratio that year, the county decided to try again, since, after November 2016, the tax will be discontinued permanently if not approved by local counties.

It was estimated by the county in 2012 that the 1 percent use tax on vehicle titles, collected as a sales tax, brought in about $57,000, half of which is given to the Sheriff's Department and the other half goes to the road and bridge department of Vernon County.

If a majority of voters do not vote "no" on the ballot by the close of Tuesday's election, that revenue may not be collected after March 2017.

"Not only is it going to be a hit to our budget," Vernon County Presiding Commissioner Joe Hardin said of that scenario. "It will give people incentive to go elsewhere .... The county will feel the loss if we lose it."

"It's a disadvantage for our local merchants," county collector and treasurer Phil Couch added, saying local, licensed Missouri dealerships could lose business to other dealerships in Kansas, for example.

Because of the confusing nature of the tax, Hardin said they have spoken to different groups and cities in the county to explain the use tax, which Hardin said should really be called a "titling" tax since it is only on the titles of vehicle bought from out of state.

"People have questions because it is confusing," Hardin said.

Not only does the use tax ballot measure allow counties to continue to collect revenue on titles of out-of-state purchased vehicles, but also vehicles sold between individuals within the state. Because of that, Hardin said their loss would be even more significant if the tax is not continued.

"In order to support the tax and support our local economy, we have to vote no," Hardin said, adding that voting yes on the use tax ballot will discontinue that revenue for the county.

Hardin pointed out the tax revenue could be used to pay the salary of a sheriff's deputy or pave another gravel road in the county, since those departments benefit from the revenue brought in by the use tax.

If the use tax does not pass Tuesday, Hardin said they plan to try again in a future election before time runs out in November 2016. A possible second portion of the use tax, to be voted on separately, would continue to collect the tax when materials for county construction projects, such as pipelines or power lines, are purchased outside the county.