There are several cities and counties seeking to have new taxes or bond issues approved by voters on August 4. These include several major bond issues in Kansas City, a countywide use tax in St. Louis County, and sales or property tax increases in cities throughout Missouri, including in Hazelwood, Lee’s Summit, Ash Grove, and many more.
I’ll begin with the one local issue that is being voted on statewide (for various reasons that I won’t get into): Should the Jackson County assessor be an elected position? This is a pretty easy answer. Yes, it should be elected. Jackson County reassessments have been a disaster for over a decade now, and taxpayers have every right to be angry. Jackson County voters held the county executive responsible for it by recalling him, but being able to hold the assessor directly accountable is even better. St. Louis County changed its assessor from appointed to elected almost twenty years ago, and in my very informed opinion, the assessment process has improved since then. (Here are a few pieces on the general question on which positions should be elected and which should be appointed.)
St. Louis County has a countywide use tax on the ballot (again). A use tax is simply a sales tax imposed on goods you purchase online or through a catalogue and have delivered to your home. Municipal use taxes in Missouri actually predate the internet, but unsurprisingly most cities didn’t enact them until online shopping took off over the past fifteen years or so.
My view is that use taxes are a good way to expand the tax base, level the playing field for businesses, and raise local revenues. However, the last point is key. They should not be used simply as a way for cities to get more revenue, whether they need it or not. Cutting other taxes after the use tax is imposed—especially if you have a particularly harmful tax—is a great way to achieve the above benefits without a tax windfall for the county or city.
St. Louis County is having budget difficulties now, so I would understand primarily using the use tax money to address those issues. However, it would be even better if county leadership would agree to cut—at least in part—other taxes. I would suggest reducing the St. Louis County commercial property tax surcharge as a great place to start.
Kansas City is seeking approval for some substantial water and sewer bond issuances—about $750 million worth of each. There is nothing wrong with cities issuing bonds for infrastructure uses. It happens all the time, and there is a huge market for municipal bonds. If Kansas City is going to own and operate its water and sewer systems, it should invest in the system to prevent it from decaying, which is what happened to the water system in St. Louis. If that takes revenue bonds or price hikes, then so be it. (Note that these bonds will not, at least for now, require a tax increase.) So while I have no argument against approving these bond issues, I would also be remiss if I missed this opportunity to repeat that Kansas City would be even better off if it privatized its entire water and sewer system.
Remember, August 4 is a party primary election day, but you can always ask for a non-partisan ballot if you wish to vote on local ballot issues like these without voting in a party primary. The more you know . . .
