Scott County election: Tax issue on Tuesday’s ballot is not a new tax

BENTON, Mo. — As the Tuesday, April 4 election nears, Scott County officials want residents to know they are not asking for a new tax.

If voters approve the ballot initiative during Tuesday’s municipal election, nothing changes.

“This is not a new sales tax; it is just a consent to continue,” said Scott County Clerk Allen Seabaugh said. “If you look at your county real and personal tax receipts, you will notice that it indicates ‘No Tax’ collected by the county.”

Some may forget the property taxes still appearing on the bill sent by the Scott County Collector are for other taxing entities in the county, such as school and fire district.

The actual ballot language on Tuesday’s ballot will read: “Shall the County of Scott impose a countywide sales tax of one-half of one percent and reduce its total property tax rate levy annually to zero, provided that such sales tax shall expire on Dec. 31, 2032.”

Even though the ballot language doesn’t say “continuation” or “extension,” the sales tax appearing on Tuesday’s ballot is actually a continuation of the tax that will sunset if not renewed, according to county officials.

“The biggest part of our general revenue operates on two sales taxes that are at a rate of one-half of 1%. One is perpetual; it’s forever. The other — this one (on the April 4 ballot) sunsets every eight years. Both generate about $2.4 million, so it’s our lifeline for the county,” Scott County Commissioner Donnie Kiefer said.

Passage of this sales tax will continue the two promises when the tax was approved by voters in 2009 and 2015. The first promise is the sales tax expires every eight years requiring voter approval to continue; and the second promise is that Scott County will not charge a property tax to its citizens.

“This is kind of a report card for county,” Scott County Collector Mark Hensley said. “We have done what we said we would do. We are asking you to continue to trust us to be the good stewards of the county’s money.”

Visitors from outside of Scott County will pay their share of the sales tax when traveling on Interstate 55 through the county.

“The bottom line is we don’t have a Walmart in Scott County,” Kiefer said. “We don’t have a Lowe’s in Scott County. The Dollar General stores are popping up and the traffic on I-55 is stopping at the exits and spending money at the retailers and restaurants. Out-of-state visitors are the ones who actually pay the biggest part of this tax.”

Kiefer noted Lambert’s Cafe in Sikeston is the biggest tax generator in Scott County followed by Boomland in Benton.

Since it was passed in 2009 and again in 2015, this sales tax has helped to lessen the personal burden on Scott County residents, Hensley said.

“You do have a lot of people who are out of state who are helping pick up the bill for us, so to speak,” Hensley said. “In reality, these people are out-of-state traveling through your county and using goods in your county. They’re using your county roads, so, it’s not a bad thing have them help through the sales tax.”

The commissioners said they also have visited with civic organizations and city councils to educate them about the sales tax prior to the election.

Hensley recalled in 2008 the county had a 10-cent county tax levy on real and personal property; this tax was replaced by the half-percent sales tax first passed in 2009.

“(In 2008), you had a line item on your tax bill you received,” Hensley said. “It had a dollar amount there. It was kind of an agreement between the county and taxpayers, that if you help us pass this bill, then your county tax would go away.”

If the sales tax does sunset without a continuation being approved, county officials would have little choice other than to resume collecting the property tax to help make up for the loss of revenue, they said.

“Then there would be a tax back on the tax bill,” Hensley said. “If you take away a revenue source, it’s got to be replaced.”

The tax on Tuesday’s ballot helps the county with its day-to-day operations, Hensley said.

“To replace $2.4 million today, instead of a 10-cent tax levy, it would take about 46 cents,” Hensley said. “So if you have a $100,000 home, it would be around $75-$80.”

Also on Tuesday, Scott County voters will decide whether to impose a countywide 3% sales tax on recreational marijuana sales. The Missouri Municipal League estimated that would generate $12,500 for Scott County, but it also indicated it wasn’t confident in that number, Seabaugh said.