▼

Prop. 1 - Brentwood Use Tax Proposal

Show All Answers

1. Why is a use tax proposal by the City of Brentwood on the November ballot?

Over time, more and more purchases of goods, supplies and materials are shifting to out-of-state and online purchases rather than from our local retailers. Unlike many cities in St. Louis County, Brentwood has been able to provide municipal services without relying on property taxes. The use tax will provide revenue for city services without increasing local sales or property tax rate.

2. What exactly is the use tax?

A use tax is a type of a sales tax placed on items purchased outside of Missouri or online but are for use in Missouri. This is not an additional sales tax. Sales tax is for retail purchases within the state of Missouri or from vendors obligated to impose Missouri taxes, while the use tax is for purchases from out-of-state vendors that do not pay sales tax.

Many large online sellers already collect our state and local sales tax, so this would have no impact on those purchases. Those out-of-state and online sellers not collecting our local and state sales tax would collect and pay the use tax. There is already a state use tax in effect that is collected by the Missouri Department of Revenue. The use tax on the Nov. 3, 2020 ballot would add the city portion for Brentwood.

3. How much additional revenue will the use tax generate for our City?

It is estimated the use tax will generate between $295,000 and $385,000 annually for the City of Brentwood.

4. Who pays the use tax?

Much of the revenue from a use tax is generated from businesses doing work in Brentwood and items purchased from out of state. Most online sales already include local and state taxes, and the use tax would not apply to these.

There is already a State of Missouri use tax. You will not pay the City of Brentwood portion unless you pay the state portion.

Following completion of the current Brentwood Bound plan, and once flooding is controlled, many companies will be interested in developing the improved area along Manchester Road. These developers and other commercial and industrial businesses elsewhere in town will pay the use tax on out-of-state purchases for completion of these projects. For example, if a restaurant buys kitchen equipment from California or a store buys new shelves or display cases, the use tax will be collected on that purchase. Those businesses are already required to pay the state’s use tax on those purchases. If Brentwood has a use tax, they will then have to pay tax to Brentwood as well.

5. Is this a double tax?

No. Purchases will either include the state and local sales tax, or the state and city use tax. No one will pay both. Most online sales already include local and state taxes, so this would not be an additional tax on those purchases.

6. How will this impact local retailers?

Brentwood’s local retailers collect sales taxes. While some out-of-state retailers collect our local sales tax, others do not. The use tax will subject all retail sales, in-state, out-of-state, and online purchases to the same tax rate.

7. Do other area cities collect the use tax?

The use tax is collected by many cities and counties throughout Missouri including Richmond Heights, Maplewood and Clayton. As a reminder, there is already a state use tax in place.

8. What if I already pay taxes on an out-of-state purchase?

Some out-of-state sellers are already collecting the state use tax, or state and local sales tax. When you see a tax listed on your online purchase, it is either the sales tax if the seller has a business location in Missouri, or the state use tax if that seller is out of state. If it is the state use tax, passing this proposal will only add the City of Brentwood portion.

9. What goods are subject to the city use tax?

The city use tax applies to any goods, supplies or materials purchased out-of-state by a business operating in Brentwood or a resident of Brentwood. Exemptions do exist for purchases for resale, manufacturing and not-for-profits. Most online sales already include local and state taxes, so this would not be an additional tax on those purchases.

10. Does the city use tax apply to private vehicle sales?

Not under current state law. The city sales tax would apply to these purchases.

11. How is use tax paid?

Much like the local sales tax, businesses collect the use tax when items are purchased and pay the tax through the Missouri Department of Revenue. Just like with the local sales tax, the Department of Revenue shares the city portion of that revenue with Brentwood. Businesses generally file use tax returns along with their sales taxes.

12. What is the rate for the use tax?

The city use tax is applied at the same rate as the local sales tax. So out-of-state and online purchases would be subject to the tax rate that is collected by Brentwood retailers. Buyers either pay the local sales tax or the use tax — not both — and the rate will be the same.

13. Do individuals have to file a use tax return?

The simple answer is no. However, this is a confusing area of the law, so a disclaimer is needed.

The law has provisions requiring individual self-reporting on $2,000 in purchases where the city use tax was not collected by the out-of-state seller. When the use tax was first passed in Missouri, the technology for tracking sales was not nearly as well developed as it is today.

With today’s technology, that requirement is a relic of the past. The bottom line is, if you are not filing this report now, you will not file a report if this proposal passes. And even if you are filing a report now, chances are you will not file one in the future as more and more out-of-state sellers collect the tax. In fact, efforts are underway to revise this portion of the law since it is irrelevant to how the tax is now collected.

Just like with the sales tax, the Missouri Department of Revenue directly collects the use tax from out-of-state businesses selling items in Brentwood. With the technology now available, and the manner in which the Department of Revenue now collects the use tax, individuals do not have to worry about this provision in the law unless it is a form they are already filing.

14. Who can vote in the Nov. 3 election?

All registered voters in the City of Brentwood are eligible to vote in this election. A person may vote in any election who:

• Is a citizen of the United States and is at least 18 years old
• Has been a resident of Missouri and of the City of Brentwood for at least 28 days before the election
• Has registered to vote by Oct. 7, 2020
• Is not registered to vote in another jurisdiction

15. When is the election?

Election Day is Tuesday, Nov. 3. The polls will be open from 6 a.m. to 7 p.m.

16. How do I register to vote?

You can register to vote any time before Oct. 7, 2020. Visit St. Louis County Board of Elections at https://stlouiscountymo.gov/st-louis-county-departments/board-of-election/ or call 314.615.1800.

17. I can’t make it to the polls on Election Day. How do I vote?

You can cast an absentee ballot in person or vote via mail through the St. Louis County Board of Elections. Visit https://stlouiscountymo.gov/st-louis-county-departments/board-of-election/ or call 314.615.1800.

18. Where can I get additional information about registration, mail in and absentee ballots?

Additional information is available through the St. Louis Louis County Board of Elections. Visit https://stlouiscountymo.gov/st-louis-county-departments/board-of-election/ or call 314.615.1800.

19. Where do I vote?

St. Louis County voters can vote at any polling place in St. Louis County. 

Your voter notification card includes your precinct number and closest polling location. Additional information is available through the St. Louis County Board of Elections. Visit https://stlouiscountymo.gov/st-louis-county-departments/board-of-election/ or call 314.615.1800.