Kearney Sees Path to Provide Services and Amenities

On November 2, voters will have an opportunity to provide funding for essential City services such as public safety and parks. This funding would go to a city initiative to boost funding for police, pets, parks and pathways. A use tax of 3% would only be collected on goods purchased from out-of-state vendors who are currently not paying local sales tax.

“The City relies heavily on revenues from local sales tax to fund basic services,” said City Administrator Jim Eldridge. “Nationwide, e-commerce sales rose 14.9% in 2019, and represented 11% of total sales. In order to continue to provide the essential services and amenities that our residents expect and deserve, the City must adjust to this trend and modernize its revenue sources. In 2018, the Missouri Department of Revenue estimated a local use tax would generate $600,000 annually for Kearney.”

In addition, some of the City’s current revenue is at risk. The City of Kearney currently receives the sales tax revenue when a resident purchases a car from out-of-state. If a use tax is not adopted by November 2022, that revenue will be lost, and will have a negative impact on the city’s budget and ability to serve its residents.

Our local businesses invest in our community, employ our residents, and contribute to local fund-raising events and community projects. Out-of-state vendors currently avoid local taxes, putting local businesses at a competitive disadvantage. A use tax would eliminate the disparity in tax rates collected by local and out-of-state sellers by imposing the same rate on all sellers.

The local use tax would only be applied to purchases from out-of-state vendors for delivery and use in Kearney. The 3% local use tax on purchases made from out-of-state vendors would be equivalent to the 3% local sales tax applied to local purchases. It’s one or the other, never both. A purchase would not be taxed twice.

Approximately half of all Missouri cities with populations of 2,000 or more already have a Use Tax in place. Neighboring cities with a Use Tax include Liberty, Gladstone, Smithville and Excelsior Springs. Clay County also has a county use tax.

KPGZ News - Brian Watts contributed to this story