On November 2, 2021, Parkville residents will be asked to vote on Proposition A, a referendum to impose a local use tax to eliminate the disparity in tax rates collected by local and out-of-state sellers by imposing the same rate on all sellers.
A local use tax supports Parkville businesses and the entire community by eliminating the advantage out-of-state retailers have over local brick and mortar retailers. In addition to leveling the playing field, a local use tax assures out-of-state businesses pay their share for Parkville police protection, street maintenance and other City services.
The City currently levies a 2 percent local sales tax. A local use tax would apply the same 2 percent rate on purchases from out-of-state sellers. Buyers do not pay both a sales tax and a use tax. They pay one or the other. Online purchases are the most common example of the use tax application.
In a changing marketplace, the City is preparing to update revenue sources to keep pace with increasing online purchases that do not support local businesses or City services. Much of Parkville’s character, including a unique downtown and other businesses, depend on local support.
Out-of-state retailers profit from Parkville buyers, but without a use tax in place, out-of-state retailers do not pay for:
- Street maintenance. Parkville streets support daily delivery trucks in the community.
- Police protection associated with traffic and package thefts.
- Other City services.
Local use tax funds would be used to maintain Parkville’s quality community. Revenue would be directed to the Parkville Police Department’s public safety services, maintaining City streets, and other City services.
Parkville’s surrounding communities have a local use tax including: Kansas City, Riverside, Platte Woods, Platte City, Northmoor, Lake Waukomis, Gladstone, Pleasant Valley, Liberty, Smithville and others.
Shall the City of Parkville, Missouri impose a local use tax at the same rate as the total local sales tax rate, provided that if the local sales tax rate is reduced or raised by voter approval, the local use tax rate shall also be reduced or raised by the same action?
Fall 2021 Newsletter