County’s Use Tax Revenues Down $18K

“Something appears to be very wrong.”

Presiding Commissioner Jesse Roy made that statement during the Feb. 20 regular meeting, as he regarded an $18,000 deficit in use tax revenues when compared to last year.

January use tax revenues were $10,294 lower, and February’s revenues were $8,559 lower.

“I just can’t believe they would be that low,” said Roy.

Collection of revenues by the state is about two months behind, which means the January and February 2025 totals are from November and December, when they should have peaked because of holiday buying.

Treasurer Terry Slayton agreed that this is concerning and doesn’t bode well for the budget, if this trend continues.

The way it works is: the Missouri Department of Revenue (DOR) collects state income tax, corporate and franchise tax, sales and use tax, and other personal and business taxes.

The use tax is charged on items purchased by a consumer that did not pay sales tax, if he or she would normally have had to pay sales tax in his/her own state.

For instance, let’s say someone who lives in Missouri buys goods from another state where no sales tax is levied, such as Arizona.

Either while visiting a use tax-free state or through online shopping), buyers are supposed to report and pay use tax.

The rate of use tax paid is generally the same as the buyer’s local sales tax rate, which is imposed by the government on the sale of goods and services.

While making in-store purchases, sales tax is added to the purchase price at the point of sale, which means the seller collects it and remits it directly to the government.

However, because it is up to consumers to be honest and calculate and pay use taxes, offenses can be difficult (but are not impossible) to enforce.

The purpose of the use tax is to protect in-state retailers against competition from out-of-state sellers that don’t have to collect sales taxes.

Counties and cities receive the monies collected by the state each month and rely on it.

It should be noted that a business or buyer who does not pay use tax may be subject to interest and penalties once it is discovered.

Roy asked Slayton to contact the state and discuss the issue to determine options.