County, city leaders meet to discuss use tax ballot issue

County and city leaders met Wednesday to talk strategy for the upcoming November special election.

Officials from Boone County, Columbia, Ashland and Harrisburg are all asking residents to approve a proposed use tax on Nov. 7.

It would allow the county and cities to collect taxes on purchases made online from out-of -state vendors. The use tax would not be applied to purchases that do not exceed $2,000 in a calendar year.

Leaders discussed ways they plan to educate their communities on the proposed tax, which included making fact sheets and using testimonials from local businesses that may have been affected by online sales.

The group discussed forming a campaign committee with local businesses.

County and city leaders have said an increase in online sales has created lagging local sales tax revenues.

“We can look at our sales tax revenue from previous years and notice that we’re off a little bit,” said Ashland Mayor Gene Rhorer. “I would say this year, we’re off anywhere from 3 to 5 percent, which is quite a bit of money out of a budget that’s $1.5 million.”

Rhorer said the use tax would bring in $30,000-40,000 a year for the city. He said the money would be dedicated to stormwater runoff, law enforcement and streets.

“We really need that internet sales gap filled and this use tax would do that,” he said.

Harrisburg Trustee Reggie Wilhite said the city’s budget is not as significant as other local municipalities, but said the county budget affects their city services.

Wilhite said money from the use tax would go toward streets, sewer and Harrisburg’s community betterment budget, which helps fund local civic events.

Boone County commissioners said money from the use tax would go toward the county’s general fund, law enforcement as well as road and bridge projects. The use tax is expected to generate $1.2 million for the county.

Columbia could see about $916,000 if voters approve the use tax. City manager Mike Matthes said the money would go toward the city’s general fund, public safety and roads.

City and county officials plan to meet again in two weeks.