What is a Use Tax or Proposition U? - Please watch the video below to find out.
What is Proposition U?
It is a use tax. Out-of-state vendors remit sales taxes to the state of Missouri, but not to Chesterfield. Prop U will fix that. Retailers will collect the same amount of sales tax whether the purchase is made locally, or from an out-of-state vendor.
How are the services provided to Chesterfield residents by the City of Chesterfield funded now?
Chesterfield has chosen to be a low tax city. Our city has NO property tax, so sales/use taxes are critical. Chesterfield funds services our community enjoys, such as our internationally accredited Police Department, which keeps us safe; our accredited parks, recreational and art opportunities for our use and enjoyment; our internationally accredited Public Works Department which plows your streets and repairs your roads; and our Planning Department which guides our growth and development to protect our neighborhoods and ensure that it is high quality and appropriate for Chesterfield.
These services are funded largely by the sales taxes everyone pays when they shop at stores in our city. The county-wide sales taxes collected in Chesterfield are sent to the St. Louis County "pool" and divided among other pool cities in the county. Chesterfield only receives back HALF of the county sales tax revenue we generate.
ALL Prop U revenues will stay in Chesterfield.
Why is Proposition U important for Chesterfield?
Chesterfield’s revenue stream, from all sources, is $2.23 million LESS than it was in 2014! Constantly escalating costs, paired with decreasing revenue is not sustainable. Prop U will help replace lost revenue and ensure the city can continue the current level of quality services.
How much would the Chesterfield Proposition U - Use Tax Be?
It is 1%, the same amount that local brick-and-mortar stores in Chesterfield collect now. If passed, out-of-state vendors will collect the same sales tax that a local retailer does. It is not a double tax. If you pay local sales tax, you don’t pay a use tax. The use tax only applies to out-of-state purchases.
What happens if Proposition U does not pass?
Just like we all do with our household budgets, the City will have to make hard choices about what services we can still afford to pay for...and which ones we can't. With actual revenues decreasing while costs are increasing, tough decisions will be required.
Prop U will help offset lost revenue and ensure the city can continue the high quality level of services we currently enjoy.