Vehicle Sales Tax Continuation on April 4 Ballot - The St. Martins vehicle sales tax will be on the April 4, 2017 ballot. A majority vote is required for St. Martins to continue to receive
these funds. Here are the facts to consider when deciding on this measure.
Background - In January of 2012 the Missouri Supreme court issued the "Street Decision"
creating a loophole in the Missouri sales tax laws allowing vehicles purchased out-of-state
or from an individual to be exempted from the local sales tax. For a short period, Missouri cities that did not have a local use tax in place lost the tax revenues they once had from vehicle sales. In 2013, the Missouri Legislature provided municipalities with temporary relief from the tax loophole. The legislature re-imposed the local sales tax on out-of-state vehicle purchases along with person-to-person sales, but required that cities must receive voter approval to keep the loophole closed by November 2016. This was later extended to November, 2018. St. Martins residents will decide on the issue on April 4, 2017.
Why is the Sales Tax on Motor Vehicles Important to St. Martins?
****St. Martins depends on this important revenue source to fund on-going
city projects. If the measure is not passed St. Martins would lose approximately
$15,000 per year. This money goes into general revenue helps fund street
maintenance, Niekamp Park, employee salaries, etc.
****This is not a new tax. With voter approval, this ballot issue will continue the
existing sales tax on vehicles purchased out-of-state and remove the incentive for
St. Martins residents to go out-of-state to purchase a vehicle to avoid sales tax. It
places Missouri auto dealers on a level playing field with out-of-state auto dealers.
A "YES" vote continues the current St. Martins tax rate and continues the same amount of funds to St. Martins for important city services. A "NO" vote would remove the local sales tax from vehicles. The state sales tax on vehicles would be unchanged.
Please contact City Administrator Doug Reece with any questions you may have about this
ballot issue. He can be reached at 573-230-9105 or email@example.com