Propositions ask to continue tax on out-of-state vehicle, boat …

On Tuesday, voters in Boone County (Proposition F) and Columbia (Proposition 2) will be asked to consider continuing an existing sales tax on purchases of out-of-state motor vehicles, trailers, boats and outboard motors.

Q. What is the sales tax about?

Q. Is this a new tax?

A. No. The question is on the ballot only as a result of the Missouri Supreme Court decision and the state legislation that followed. If the question is not placed on the ballot, or if the tax is discontinued by voters, the tax would cease to be collected beginning January 2017.

Q. How does the tax affect me?

A. The tax only applies if you purchase a motor vehicle, trailer, boat or outboard motor from out of state. Similar purchases made in state are subject to the local sales tax regardless of the vote on this ballot question.

Q. Are other communities in Missouri affected?

Yes. A number of cities across the state are voting on this issue at various times during 2016.

Q. Is there an impact on local dealerships?

A. Yes. If the tax were to end, Missouri dealerships would be at a competitive disadvantage with out-of-state dealerships that would no longer be required to collect the tax.

Q. What is the expected loss of revenue?

A. City staff estimates that the budget impact of discontinuing collection of the out-of-state vehicle sales tax would cost about $500,000 per year. About 20 percent of vehicle sales come from out-of-state vendors or private sales, according to the Missouri Department of Revenue.

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