What Is The Proposed Oregon County Use Tax?

Edited— April 3, 2023

Missourians are voting Tuesday, April 4, 2023. Several essential items are on Tuesday’s election ballot. A main issue voters are considering is the tax levies proposed by the different school districts in Oregon County. However, also on the ballot is the question about the proposed Oregon County Use Tax:

Shall the county of Oregon impose a local use tax at the same rate as the total local sales tax rate, 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? (View the full question here)

Many residents here in Oregon County are confused about the language, effect and scope of this proposed tax.

What this appears to be is a use tax that will be added to purchases made online or mail order where you didn’t get charged sales tax in addition to the use taxes Missouri already charges, BUT we haven’t been able to get confirmation on that. (If anyone knows what the bottom line on this is, please comment below.)

Questions remain: how can the county track each of our out-of-state purchases? Will we have mountains of forms to fill out each month? What are the tax specifics?

Regulation as Opportunity

Businesses that rely on heavy tax regulation love tax laws like this. Avalara, which touts itself as “One solution to calculate tax rates, prepare returns, and manage documents ^[1]“, love the passing of sales tax and use tax laws.

Missouri “Consumer Use Tax”

Missouri has charged consumers a “Consumer Use Tax” since 1959. Basically, if you didn’t buy it here in Missouri and didn’t pay sales tax you’re on the hook for the tax. Further, even if you buy a retail item here in Missouri, but weren’t charged sales tax, you need to file and pay ^[2].

The threshold for filing a Consumer Use Tax Return is $2000 in one year. The state explicitly says “The $2,000 filing threshold is not an exemption or exclusion ^[3].”