The Undue Burden

Hundreds of St. Charles County residents received a surprise letter from the Department of Revenue (DOR) this week — requiring them to pay several hundred dollars in sales tax on vehicles purchased one, two, or even three years ago.

In a recent audit, the city of O’Fallon discovered that the license office had undercharged residents for the sales tax due on their motor vehicles. Now, DOR has billed many residents for the difference in what they paid and what they should have paid in taxes. (Even three years later, the DOR may legally assess these taxes under Chapter 144 of the Missouri Revised Statutes.)

This case is an example of how inefficient government bureaucracy results in undue burdens on citizens.

To a family hit hard by the recession, several hundred dollars can be difficult to come up with on short notice. This isn’t a case of citizens paying their fair share; it’s a case where a relatively minor governmental mistake can have unexpected and burdensome consequences on individuals.

Sales tax rates in Missouri differ from municipality to municipality because the total is comprised of special, local, and state sales taxes. While there is a general state rate of 4.225 percent, each municipality may charge its own additional rate. On top of that, special taxing districts within a municipality may impose relatively small sales taxes for specific purposes, causing sales tax rates to differ block by block in some areas.

In this case, the multiple layers of taxing authorities did not properly communicate and failed to charge residents the correct amount.

It is unclear who exactly made the error, but it likely occurred because of outdated maps that did not reflect O’Fallon’s recent annexations. Many vehicle owners were charged sales tax rates for unincorporated St. Charles County, when, in fact, they lived within O’Fallon’s city limits. When they paid the sales tax on their vehicles, the licensing office apparently acted on incorrect information.

According to Tom Drabelle, O’Fallon’s Director of Public Relations:

“It is very possible some of the maps being used by the local office, maybe even the state, weren’t updated as they should have been with all the annexations that took place and the changes that occurred literally on the fly sometimes.”

Because of confusion at different levels of government, hundreds of Missouri taxpayers are forced to bear an immediate burden. For more information, please see the article on KSDK’s website.

Should Teachers Get Grades, Too?

Tennessee has recently taken an important step toward ensuring that its public schools provide a quality education by setting up a system for grading teachers. Missouri should follow suit and go one step further, streamlining teacher termination policies.

Starting this fall, all public school teachers in the state of Tennessee will be receiving yearly grades, which will play a role in decisions for termination as well as tenure attainment.  Half of the evaluation will come from principal observations, with the remainder based on student academic performance and other factors.  The new system will also require that all teachers, tenured or not, be evaluated each and every year.

Collecting more detailed data on teachers, and therefore school performance, will help to bring much needed competition to the public school system.  Given access to this information, concerned parents will be able to make better decisions as to where their children should attend school.  With renewed pressure to perform, however, schools and districts will need to be able to remove teachers found to be ineffective.

Here in Missouri, even for schools or districts that choose to implement an evaluation system, the removal of bad teachers is a slow and cumbersome process. Missouri law sets out detailed procedures that must be followed in terminating an under-performing teacher.  These include a list of the only acceptable reasons for termination, in addition to a requirement for a thirty-day warning period prior to the hearing. In the event of a successful termination, Missouri teachers can still appeal to the district court, possibly reversing the decision.

Given the power to more easily terminate bad teachers along with an effective evaluation process, principals and superintendents could much more successfully manage their schools and districts.   Furthermore, if school administrators had the ability to fire poor teachers, less education spending would be wasted on prolonging the careers of bad teachers held within the schools by the promises of pension plans and tenure agreements.

Public school districts’ primary concern should be providing a quality education to students. In fact, this quotation is found in many district’s policies:

“Because the school district exists for the students, and the main obligation of the Board of Education is to provide an education for the district’s students, and not to provide employment, the Board will, through procedures carried out by the administration, determine which employees can best serve the needs of the students.”

Employing ineffective teachers until they reach retirement age hurts every student the teacher fails to teach. Tennessee has given us a strong example to follow, but to see true success here in Missouri, school administrators should be given the power to more easily remove bad teachers for the sake of both our tax dollars and the students’ education. The legislature cannot possibly foresee every situation and prepare for it accordingly.  Control over the system should be decentralized and placed in the hands of those that live and work within it every day.

On Aerotropolis and High-Speed Rail

Over the weekend the St. Louis Post-Dispatch published a commentary written by Ripley Rasmus of the consulting firm HOK. In his piece, Rasmus sketches out a not-so-distant future that includes a bustling Saint Louis Aerotropolis and a high speed rail line from Chicago, telling readers that “[f]ortunately there are visionary leaders in our community who fully understand that these scenarios are not just a dream.” Rasmus’s nod to the “flight of fancy” argument is, for obvious reasons, much appreciated.

That said, it’s worth reiterating the manifest problems with the Aerotropolis project. It’s also fair to describe Rasmus’ high-speed rail dream as a billion-dollar boondoggle, based on the Show-Me Institute’s own research in the area. As Randal O’Toole observed, the cost of the system envisioned to connect just Saint Louis and Kansas City would be enormous:

Upgrading the 250 miles of Missouri tracks in the FRA plan to run trains at 110 mph would cost taxpayers at least $875 million, or nearly $150 for every Missouri man, woman and child. Subsidizing passenger trains over those routes would cost millions more per year, yet the typical Missourian would take a round trip on such trains only once every six years.

It is exceedingly important to emphasize that these “dreams” cost real money, and Rasmus does not reference a single price tag for any of the ideas these “visionary leaders” have put forward anyplace in his commentary. Visions can be as amorphous as they please; budgets and good sense cannot.

One other interesting thing: Rasmus cites back to the RCGA for his jobs numbers on Aerotropolis, saying that the project will “directly employ more than 5,000 people, and create an additional 5,000 jobs in secondary businesses serving the trade hub” — added together, that’s 10,000 jobs.  I’ve taken issue with the job mad libs of the RCGA and others before, with particular criticism for the two different figures offered by the RCGA and cited in the media. I’ll leave it to readers to determine whether Rasmus’ assessment clarifies or further muddles the Aerotropolis jobs forecast(s).

“Felt Like Winning the Lottery!”

It’s the stuff every ticket owner dreams of — winning a heap of cash. And that’s exactly how co-director Joe Anderson felt when he was awarded Missouri film production incentives. This is what Anderson said in a published interview:

One of those investors also went a bit further and loaned us funds against a film incentive program from Missouri that allowed a 50% tax credit for every dime we spent in their State. It worked out quite well and I would love to do that again! Felt like winning the lottery!

The movie, Albino Farm, received over $193,000 in tax credits. Enjoy the trailer — your tax dollars helped pay for it.

Opting Out of the TSA

The Transportation Security Administration (TSA) has once again changed its policy regarding private airport screeners — this time allowing airports across the country to apply to opt out of using the TSA and hire private security firms instead. We followed this before, when in February, the TSA announced that it would not allow any additional airports to opt out. Springfield-Branson Airport was one of the airports denied the use of private screeners under the old policy.

Springfield-Branson has been invited to reapply for permission to use private screeners and join Kansas City International Airport as one of the current 16 airports that contract private security firms.

The new application process has more requirements than it did before February, but hey, it’s a good start. Having private security firms provides competition for the TSA and that’s good because it boosts efficiency and cuts costs.

My colleague David Stokes put it best in a blog post earlier this year:

“The very existence of competition brings a greater degree of efficiency to the TSA, even if it continues to do the screening in the vast majority of American airports . . . but if the presence of competition in a small number of airports serves to reduce the TSA’s complacency, that benefits all of us.”

Stunner: Both St. Louis Del Tacos Closed Their Doors for Good Last Night

Looks like “saving delicious burritos” is now off the menu of reasons to oppose the Grand Blvd. demolition. KSDK reports:

The owners of Del Taco restaurants announced the closing of the company’s two stores in St. Louis Thursday night. Both locations, at 212 South Grand Boulevard and 1033 McCausland Avenue, officially closed Thursday at 11:00 p.m.

“We want to thank our employees for their commitment to excellence and thank our customers for allowing us to become such an important part of the fabric of St. Louis culture,” said Pat Shields, operating partner of DF Restaurants, LLC.

We’ll have more as the situation clarifies, but in the meantime, a classic DT commercial (in memoriam.)

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