The Webster Groves City Council on Jan. 5 approved first and second readings to a bill that would place a local use tax â covering internet purchases and to be called Proposition 1 â on the April 6 ballot. A final vote is set for Jan. 19.
A use tax is a sales tax imposed on the purchase of goods by Missouri residents and businesses from out-of-state vendors. The tax rate would be the same as Webster Groves imposes on local stores and would be assessed only on purchases from out-of-state vendors that exceed $2,000 in any calendar year.
City officials said a local use tax will help level the economic playing field between local retail merchants and out-of-state vendors and that the additional tax revenue will support critical municipal services.Â