Use tax passage bittersweet for county officials

By Buck Collier, Special Correspondent
Posted 8/13/21

HERMANN – Last week’s voter approval of a joint use tax proposed by Gasconade County government and the Enhanced-911 program was a bittersweet victory at best for county administrators.

While …

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Use tax passage bittersweet for county officials

Posted

HERMANN – Last week’s voter approval of a joint use tax proposed by Gasconade County government and the Enhanced-911 program was a bittersweet victory at best for county administrators.

While the seventh time asking voters for the tax proved to be the winning time, approval was given in a 7-percent turnout — and by a margin of 15 votes.

Whether it was the consolidation of polling places, from the usual 16 down to seven, or a general disinterest in voting on a tax that will not affect the vast majority of county residents, registered voters simply stayed away. County Clerk Lesa Lietzow had projected what she thought would be a very low turnout — 15 percent — for the special election. Even she was surprised by the exceedingly low voter participation.

Still, while county government now will be able to collect a 1-cent sales tax on purchases made by Gasconade countians from out-of-state vendors, the bigger winner might be the E-911 program, whose administrators were appeared more adamant about pursuing the tax than some in county government. The E-911 program will receive a use tax of .375 cents on out-of-state purchases.

Some estimates of the amount of revenue being lost by not having a use tax were about $100,000 a year from county government and up to $90,000 a year for E-911. The estimates seemed based more on anecdotal evidence than hard figures, grounded in the obvious uptick in online purchasing by county residents during the height of the coronavirus pandemic last year.

In order for the use tax to produce significant revenue for the agencies, online shopping will need to remain strong as the local economy recovers from last year’s coronavirus-prompted shutdowns. Some local government officials believe it will; others are less confident.

“I want to thank both the Chambers (of Commerce) for the ads they put in the papers and thank 911,” said Presiding Commissioner Larry Miskel, R-Hermann, during last week’s County Commission session held at Owensville City Hall.

“I also wanted to thank the people who took their time to go out and vote,” added Southern District Associate Commissioner Jerry Lairmore, R-Owensville. Lairmore was the leading advocate within county government for seeking the use tax.

County administrators had hoped for more voter participation in the only countywide issue on the special election ballot. “If there’s a downside to the whole thing, it’s that there was a 7-percent turnout,” Miskel said.

Lietzow, the county’s chief elections official, hopes this level of turnout is merely an anomaly, not the start of a trend. However, she noted that a similar turnout was posted for the General Municipal Elections held in April.

Despite the turnout, the use tax passage means local merchants will be on a more competitive footing with out-of-state vendors. “It levels the playing field, absolutely,” said Lairmore, sounding the main message of the campaign to pass the use tax.

Northern District Associate Commissioner Jim Holland, R-Hermann, agrees that Gasconade County businesses are in a better position with the passage of the use tax. But, he pointed out, the improved standing the businesses won is muted by how few people decided the ballot issue. “It is sad, 7 percent,” Holland said.

County administrators said they don’t know exactly when the use tax will start being collected. They said it might not be until after the first of the year for them to see the county’s first use tax reimbursement check from the state. However long it takes to arrive, when it does arrive it will be deposited in the county’s General Fund and be used to help provide a variety of services to county residents.

In other matters taken up at last week’s session, the Commission is bracing to continue their efforts to fill positions within the Gasconade County Road Department. A brush cutter’s position remains unfilled and it was learned earlier Thursday that another position is soon to be vacant. Indeed, Miskel said the Commission’s meeting with Road Department personnel earlier Thursday was marked by a concern among the agency employees of the future of the department being able to replace personnel in a timely manner.

“It’s probably going to get significant, I think, in the next year and a half,” Miskel said. “We are constantly looking at filling positions, as well as looking at salary structure,” he added.

Meanwhile, the Road Department has received a new road grader — and it’s cost helps explain why it’s difficult for this county to fill some positions within the department, Lairmore said. The new grader costs $275,000.

“That’s one reason it’s difficult to hire people at $12 to $14 an hour to operate such an expensive piece of equipment,” he said, explaining that some people aren’t comfortable — at that rate of pay — being responsible for such a pricey piece of machinery.