Union, MO

The City Council of the City of Union, Missouri has voted to call a special election on the question of whether to impose a local use tax.  The election will take place Tuesday, April 2, 2024. 

A use tax would ensure that purchases from online vendors located outside of the state are subject to the same local tax rates as those purchases made from businesses located in the City of Union, Missouri.   

It would also help the City maintain its revenue while continuing to provide the services our residents expect. 

• Prop U would eliminate the disparity in tax rates collected by local and online sellers by placing the same rate on all sellers.
• With no local use tax in place, consumers have an incentive to purchase goods and services from online vendors instead of buying locally.
• If voters approve the Prop U ballot measure, online, out-of-state purchases would be taxed at the same City tax rate as local purchases (currently 2%).
• It’s estimated that the City of Union would collect $376,000 annually through the use tax.  The funds collected by the use tax would be spent in the same manner as the local sales tax.
• The use tax funds would be allocated to roadway maintenance, sidewalks, water and wastewater, police, parks, and other city services.
• With the rise in online sales, the City is seeing a decline in its sales tax revenue.  To keep pace with this trend, the City must modernize its revenue sources to continue to provide the essential services our residents expect.
• The City relies heavily on revenues from local sales tax to fund basic services, such as roadway maintenance and public safety.
• Because the City does not have use tax in place, Union has missed out on approximately $1.9 million in tax revenue due to online shopping over the last five years.