UPDATE: Voters reject Jefferson City use tax

UPDATE: Voters rejected the use tax measure by vote of 53% to 42%, or by 1,761 votes.

ORIGINAL: On Tuesday, voters in Missouri’s capital city will consider adding a use tax for out-of-state vendors. If the tax is approved, the city could pull in an estimated $1.5 million each year, according to Jefferson City Director of Finance Margie Mueller.

Sales tax and use tax dollars fund the city’s general revenue, with a focus in public safety, as well as parks and capital improvement.

Currently, out-of-state vendors pay a use tax rate of 5.225% to the city and the county, which is lower than the 7.225% sales tax rate for local vendors. If the new tax passes, it will match the city sales tax rate at 2%.

Over 100 cities in Missouri, including St. Louis, Kansas City and Springfield have passed use taxes.

In November, Columbia voters turned down a city use tax by just over 100 votes.

Both Columbia and Jefferson City have seen a decrease in sales tax revenues, which help fund public services.