Kearney Puts Use Tax Question on November Ballot

The City of Kearney is making a second attempt to put a use tax in front of voters this fall. Instead of burdening residents with higher taxes to pay for needed infrastructure and amenities, the City is asking residents to vote for the use tax.

More than ever, a use tax can help broaden the City’s tax base, while creating a level playing field for our local merchants - Mayor Randy Pogue

The use tax brings in tax dollars from the purchase of large ticket items over the internet or through the out-of-state sale of items like motor vehicles, boats, and trailers. It is tax money that could be coming back from out-of-state sales, but since citizens have not approved this measure, Kearney is missing out on revenue it could use for infrastructure and amenities. 

The use tax is not a double tax: residents will not pay the use tax in addition to the city’s sales tax. It is designed to be one or the other; never both, and will be the same rate as the sales tax. 

Cities neighboring Kearney, including Excelsior Springs, Liberty, Gladstone, Smithville, Platte City and Kansas City all have a use tax to help pay for municipal projects. There are also over 160 other cities and counties around Missouri using a use tax.

“There is a need for additional revenue to undertake many improvements of infrastructure identified over the courses of the last several years, as well as other capital improvements in the city of Kearney,” said Mayor Randy Pogue on a past edition of Kearney Live. 

Pogue sees the benefit of having a use tax to help with city infrastructure projects because sales from online, out-of-state vendors do not create local funds to help pay for city infrastructure: “With our changing retail buying habits, more than ever, a use tax can help broaden the City’s tax base, while creating a level playing field for our local merchants.”

The Board of Aldermen unanimously approved the ordinance to impose the use tax for general revenue purposes. Residents will find this proposal on the November 2 ballot.

KPGZ News - Brian Watts contributed to this story