Missouri localities look to increase use tax collections, July 2018

Numerous tax rate changes took effect in Missouri on July 1, 2018. Most of these involve local use tax.

If an out-of-state business is required to collect and remit tax on sales to Missouri residents, that business collects and remits use tax, not sales tax. There is a state use tax of 4.225 percent in Missouri, which mirrors the state sales tax; however, many jurisdictions impose a local sales tax but not a local use tax.

With the growth of ecommerce, an increase in people shopping online, and a subsequent decrease in customers shopping in brick-and-mortar stores, Missouri jurisdictions have seen sales tax revenue decline. The lack of a local use tax has meant those transactions were not taxable. To increase collections, many local governments are adopting local use taxes.

New local use taxes

Effective July 1, 2018, the following jurisdictions imposed a local option use tax at the same rate as the local sales tax:

• New Madrid County: 1.5%.
• Texas County: 1.875%
• Atlanta (Macon County): 1%
• Battlefield (Greene County): 1.5%
• Benton (Scott County): 1%
• Cabool (Texas County): 1.5%
• Cainsville (Harrison County): 0.5%
• Callao (Macon County): 1%
• Chaffee (Scott County): 1.75%
• Clarksdale (DeKalb County): 1%
• Cool Valley (St. Louis County): 0.5%
• Duquesne (Jasper County): 2.375%
• Edina (Knox County): 1%
• Farber (Audrain County): 1%
• Houston (Texas County): 1.5%
• Koshkonong (Oregon County): 3%
• La Belle (Lewis County): 1%
• Laddonia (Audrain County): 2%
• Leeton (Johnson County): 2%
• Liberty (Clay County): 3.375%
• Licking (Texas County): 2%
• Mountain View (Howell County): 2%
• Nixa (Christian County): 1.5%
• Paris (Monroe County): 2.5%
• St. John (St. Louis County): 1.25%
• Stanberry (Gentry County): 1.5%
• Tarkio (Atchison County): 2%
• Waynesville (Pulaski County): 2.25%
• West Plains (Howell County): 2%
• Willow Springs (Howell County): 1.75%

Other tax rate changes

The following jurisdictions have extended an existing local sales and use tax that was set to expire:

• Holt County: 0.5%
• Washington (Franklin County): 0.5%
• Rates have changed in the following special districts:
• Kansas City Convention Center Headquarters Hotel Community Improvement District (CID): new 1% district sales and use tax
• 740 NW Blue Parkway CID: new 1% district sales and use tax
• South K Transportation Development District (TDD): new 1% district sales tax
• Ballpark Village TDD: new 1% district sales tax

Additional details, including address ranges for special districts and jurisdiction codes, are available on the Missouri Department of Revenue website. To see just how confusing local sales and use tax compliance can get it Missouri, check out: The Missouri sales tax map, a cartographer’s dream (or nightmare).