January 11, 2020

Mallory Herrmann
citydesk@lstribune.net

Voters will decide whether to implement a 2.25% use tax on online purchases from out-of-state vendors who do not currently charge a sales tax. The revenues will be treated like local sales tax to support municipal costs such as police and fire, transportation and other capital improvements throughout the city.

Lee’s Summit has long been trying to address the lost revenues from online purchases, as have municipalities nationwide. While purchases made from brick-and-mortar stores within city limits are subject to the city’s sales tax, online purchases are not – often even when those purchases are picked up locally.

“For the citizens who may equate this use tax to a sales tax, I think it’s more fair to them to be very clear that we are trying to recoup the money that might go to sales tax for a brick and mortar,” said Mayor Bill Baird.

The city’s sales tax helps fund maintenance for the roads that are used by delivery trucks, emergency services that keep traffic moving smoothly and other municipal needs. As would the use tax.

David Bushek, chief counsel of economic development and planning, clarified that the city council could change how the use tax revenues are earmarked in the future with an amendment. But until then, their intent to use the funds in the same manner as local sales tax revenues would be the direction that the city manager follows in the budget.

The city council voted unanimously to include the issue on the Apr. 7 ballot.

Councilmember Craig Faith was absent from the Jan. 7 meeting.