The April 9 WKT reported that Webster Groves Mayor Gerry Welch was disappointed in the failure of Prop 1, the âuse tax.â Iâm not disappointed as I generally donât look favorably on new taxes, especially this one, as I couldnât make sense of the math.
The estimated revenue was $250,000 per year. At the proposed tax rate of 1.5%, that would necessitate over $16 million each year in online purchases by the 25,000 residents of Webster Groves. I donât see that as remotely realistic. And, that would require 8,300 families in Webster Groves to purchase the threshold amount of $2,000 per year for the tax to apply, just about every home in the city.