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March 26, 2019Morning Conversation

Greg McDanel on the Use Tax

The Use Tax on the upcoming ballot in Maryville has been a topic of interest after it failed during last year's vote garnering just 45-percent in favor of it. KXCV-KRNW news director John Coffey sat down with Maryville city manager Greg McDanel to discuss how it would impact the city and its residents.

"The Use Tax applies a sales tax rate to online purchases," McDanel said. "When you purchase something online right now, you pay the state of Missouri sales tax through the use tax, you pay the Nodaway county sales tax through their use tax, but you do not pay the local Maryville sales tax that goes to support voter-approved initiatives.  So we are trying to educate voters to see if they feel the need to approve a use tax to also apply the existing local sales tax to online purchases from out-of-state vendors."

McDanel added that Maryville shoppers spent $10.4 million to onine out-of-state vendors in 2016 which would have brought $245,000 in revenue to the city of Maryville had this money been spent locally.  There is growing concern about losing this revenue as more residents shop online.  The fact that Maryville is a rural community with limited retail and also a campus community with young online shoppers means local revenue is lost due to a variety of ways which the use tax can help with.

McDanel states that there is a continued effort to educate citizens about the Use Tax.  He says there is a great deal of information on maryville.org/usetax such as detailed explanations on the importance of it, examples, and letters of support.   

"Online shopping is a growing trend and the Maryville community has to adapt."  Accoring to McDanel, communities need to adapt to technological changes such as Uber, AirBnB, online shopping, and soon the sale of medical marijuana.  

"I encourage every voter to jump online, find some information, do a quick Google search and find some other communities and what they've faced with this and how this issue is a nationwide issue and not just in Maryville."

For the full morning conversation with City Manager Greg McDanel on the Use Tax, click on the link above.