Newton County will be asked to consider a local use tax on the ballot this August.
Use taxes are a sales tax charged on items purchased from outside of the State of Missouri, typically associated with online buying.
Newton County’s proposed use tax would be equivalent to and tied to any change to the county’s local sales tax. It would be instituted at 1.625 cents per dollar.
Newton County Sheriff Matt Stewart says the funds would be earmarked for moving staff in his department and county government into the LAGERS retirement system.
“Currently we only have the CERF retirement system, which is mandated by state statute,” Stewart explained, “it's something but not the best.” Stewart said the county wants to improve benefits for its employees “because they work hard” and they deserve it, but also to help with retention and recruitment.
Sheriff Stewart says his department and the county want to stay competitive, and they also want to change with the times in terms of revenue as more purchases are made online. He says the county is reliant on sales tax revenue, as most property taxes collected in Newton go the schools. The county anticipates 70% of their revenue in 2025 will be generated by sales taxes on local purchases. The ballot language suggests the use tax would even the playing field between local businesses and online retailers.