Proposition Police is a proposal to impose a local use tax at the same rate (2%) as the local sales tax of the City of Lake Saint Louis for the purpose of hiring additional police officers to the Lake Saint Louis Police Department.
Lake Saint Louis voters will have the opportunity to vote on Prop Police on the April 6, 2021, ballot:
To permit an increase in funding to hire four additional police officers to the Lake Saint Louis Police Department, shall the City of Lake Saint Louis impose a local use tax at the same rate as the total local sales tax rate, currently two percent (2%), provided that if the local sales tax rate is reduced or raised by voter approval, the local use tax rate shall also be reduced or raised by the same action? A use tax return shall not be required to be filed by persons whose purchases from out-of-state vendors do not in total exceed two thousand dollars in any calendar year.
Listen to Chief DiGiuseppi talk about Prop Police: video (link)
Key Facts about Prop Police
- A local use tax is a tax that applies to purchases made from out-of-state vendors.
- Purchases made within the City of Lake Saint Louis would NOT have both a sales tax and local use tax applied - the use tax would only be applied to purchases made from out-of-state vendors.
- The use tax will not increase the sales tax: If approved, the use tax means the city would begin to collect its 2% portion of the use tax (in lieu of the local sales tax) for sales to buyers in Lake Saint Louis by certain out-of-state vendors.
- Passage of the use tax means out-of-state vendors would begin to collect the same amount of tax as Lake Saint Louis retailers.
- Other cities that have approved the tax: Wentzville, O'Fallon, Foristell, St. Charles County and more than 105 cities across the State of Missouri already have a use tax in place. Having a local use tax eliminates any incentive for purchases to be made from out-of-state vendors.
Frequently Asked Questions
How does a use tax work?
- Local use tax is collected instead of sales tax when an out-of-state vendor does not have a sufficient presence in Missouri to be subject to local sales tax. More than 110 Missouri cities and 45 states already have a use tax, including the State of Missouri and St. Charles County.
- Without a Lake Saint Louis use tax in place, out-of-state purchases do not get charged the 2% Lake Saint Louis sales tax that is charged on local purchases. With a use tax in place, the same amount of sales tax applied on local purchases would apply to out-of-state purchases.
What will the funds be used for?
- If Prop Police passes, revenue generated from the local use tax will be used to hire additional police officers to the Lake Saint Louis Police Department.
Will I pay a use tax if I shop in Lake Saint Louis?
- No. Consumers will only pay a use tax for purchases from out-of-state vendors who do not collect sales tax. The use tax only applies when out-of-state purchases total more than $2,000.
If Prop Police Passes:
- The City of Lake Saint Louis would collect a local use tax made on purchases from out-of-state vendors, which would help fund essential services provided by the Lake Saint Louis Police Department every day.
If Prop Police Fails:
- The City of Lake Saint Louis will miss out on potential revenue that would be generated from the imposition of a Local Use Tax.
- Local businesses will be at a disadvantage to competing businesses that use out-of-state vendors.