State-Created Tax Map a Solid Tool for Oversight of Local Sales and Use Taxes

Over the years, I’ve talked a lot about the importance of transparency because transparency can often be an effective tool against government overreach. Generally speaking, the more the public knows about its government, the less likely that government will behave in ways contrary to the public interest. Transparency not only makes it easier to uncover past failures but also to head off future mistakes. As has been said, sunlight is the best disinfectant.

That’s why the latest version of Missouri Department of Revenue’s sales and use tax mapping tool is so welcome. A story by the eMissourian is a testament to precisely how I would hope the site would be used by the media and the public:

A purchase in downtown Washington comes with an 8.85 percent sales tax, which includes a 2 percent city sales tax and a 0.375 percent tax for the Washington Area Ambulance District.

Someone making the same purchase in downtown Union would have to pay 9.475 percent in sales tax. While Union has the same 2 percent city sales tax as Washington, consumers also pay a 0.5 ambulance district tax and a 0.5 percent tax for the Union Fire Protection District. St. Clair has the same 9.475 percent sales tax rate, with its fire and ambulance districts both having half cent sales taxes.

While Pacific charges a higher 2.5 percent city sales tax, it has the same overall 9.475 percent sales tax rate because no fire sales tax is shown.

You can find the sales and use taxes in your jurisdiction, and any Missouri jurisdiction, here.

It’s worth noting that while a number of articles this month have referenced the map as “new,” as my colleague Elias Tsapelas might note, it’d be more accurate to characterize it as “improved.” House Bill 1858 in 2018 and Senate Bill 153 in 2021 both helped lead to the new initiative, and perhaps serendipitously those local rate transparency initiatives also coincided with both the Show-Me Checkbook spending transparency projects and parallel spending transparency initiatives by the state treasurer and the state office of administration.

In other words, the transparency initiatives of the late 2010s are starting to bear fruit here in the early 2020s, so while some features on the interactive map may be “new,” the ideas aren’t. Of course, the state can always do more to promote transparency, such as requiring spending transparency from local governments and curricular transparency from schools and districts. But for what this tax map narrowly seeks to do, it does a good job of it.

A Bandage Approach: Teaching after Retirement

It is quite common for school districts to post advertisements to recruit new teachers. You may have noticed an interesting change in these postings recently—they are focused on retired teachers. In an effort to alleviate teacher shortages, the Missouri Legislature passed Senate Bill 75 this past session. Among other things, it allows retired teachers to come back to teaching while continuing to receive their retirement benefits. This idea of allowing retired teachers and administrators to continue working after retirement is not a bad one; indeed, I’ve proposed something similar myself.

The problem is that allowing retired teachers to come back to the classroom does nothing to address the problem. Let me be clear on what I mean by “the problem.” I am not talking about the problem of teacher recruitment and the number of people entering the profession. I’m talking about the teacher pipeline problem caused by the retirement system itself. It is a system that pushes people out. It incentivizes teachers, principals, and superintendents to retire in their mid-50s. This new provision does not address that issue; instead, it makes it worse.

Researchers have long known that defined-benefit pensions, such as those used in the Missouri teaching profession, have two key effects on the labor market. They provide a pull for workers to stay until the peak benefit period, then they push workers out. If a teacher begins working in Missouri right out of college around the age of 22, they will likely hit their peak benefit period around the age of 53.

If lawmakers truly want to keep great late-career teachers in the profession, they should revise the system that pushes them out in the first place. The best way to do this would be to move to a new type of pension system where teachers’ retirement plans would continue to accrue wealth as they continue to work through their 50s.

If we view Senate Bill 75 as a temporary fix (it does have a sunset built in) to address an immediate issue of teacher shortages, then the bill is fine. It is not, however, a fix to a teacher pension system that pushes out individuals who have so much more to give.

The Great School Rethink with Rick Hess

Susan Pendergrass speaks with AEI’s Rick Hess about his new book “The Great School Rethink”.

Learn more about the book: www.aei.org/research-products/b…eat-school-rethink/

Frederick M. Hess is a senior fellow and the director of education policy studies at the American Enterprise Institute (AEI), where he works on K–12 and higher education issues. The author of Education Week’s popular blog “Rick Hess Straight Up,” Dr. Hess is also an executive editor of Education Next, and a Forbes senior contributor. He is the founder and chairman of AEI’s Conservative Education Reform Network.

Listen on Apple Podcasts 

Listen on Stitcher 

Listen on SoundCloud

Produced by Show-Me Opportunity

You Can Take Your Shades Off

The future of Missouri’s workforce may not be very bright. A recent CNBC analysis of the Top State for Business ranked Missouri at a less-than-stellar 32nd. This ranking is based on what CNBC describes as “which states are delivering most effectively on the things that mean the most to business” and contains 10 categories of “competitiveness.”

The worst news for Missouri is in the Workforce category. Metrics for this category include the concentration of STEM workers and the percentage of workers with bachelor’s degrees, associate’s degrees, and Industry Recognized Credentials (IRCs). It also includes net migration of educated workers, worker training programs, right-to-work laws, and worker productivity. Missouri ranked 49th out of 50 states in Workforce, garnering just 151 of the 400 possible points.

There are a few things we know about Missouri’s workforce now and its prospects for the future. The percentage of Missourians with college degrees has been declining in recent years. The percentage of Missourians with bachelor’s degrees has declined from 31.9 percent in 2020 to 31.7 percent in 2022. (For reference, it was 25.6 percent in 2010.) Not going up as fast or remaining stagnant is problematic. Declining is very bad news.

We also know that just 60 percent of our 61,200 high school graduates in 2022 were considered to be college or career ready when they left with their diplomas. The Missouri Department of Elementary and Secondary Education (DESE) determines college or career readiness by scores on the ACT or SAT college entrance exams, the ACT WorkKeys assessment, which measures career readiness skills, the Accuplacer assessment, which is a college placement exam, and the Armed Services Vocational Aptitude Battery (ASVAB) military assessment.

So, our workforce is already in bad shape, and we are handing diplomas to nearly 25,000 high school graduates who are known to not be college or career ready. Wouldn’t you think that our leaders would be addressing this like the crisis that it is?

More than a Metaphor: The Kansas City Streetcar Nearly Goes Off the Rails

As Americans across the United States were celebrating the country’s independence two weeks ago, it appears the Kansas City Streetcar wanted to join the fun when, on the Fourth of July, one of its rails moved (gently) skyward. Indeed, as a streetcar approached a bridge over I-670, the operator noticed the rail move a little, and then a lot. The streetcar’s progress halted and now the entire line will be shut down for what could be a month or more:

On Thursday, contractors began to dig into the rail bed on the I-670 bridge to fix a piece of steel track that emerged from the pavement earlier this week.

A streetcar driver noticed the problem on July 4, when the rail popped out of the ground as a train was approaching the bridge. Donna Mandelbaum, a spokesperson for the Streetcar Authority, said the driver was able to stop in time to avoid further damage or injury.

Since then the Streetcar Authority and its partners have been examining the bridge and rails to find out what caused the problem. Mandelbaum said the rail had likely bent because of thermal expansion.

Since then and in the meantime, service along the streetcar will be provided by buses which, if you’re familiar with what Show-Me Institute analysts have said about the city’s streetcar projects over the last decade, is fitting. Buses are faster, cheaper to set up, easier to reroute, and easier to keep in operation. Simply put, they’re better. That for a decade Kansas City pushed to build the line and later expand it despite its obvious drawbacks is a testament to the city’s commitment to dubious transit schemes in service to questionable economic development objectives.

Kansas City may not be alone among municipalities in the misguided effort to resurrect old-timey transit—hello St. Louis!—but the absurdity of using rails like this in Kansas City is accentuated by this tale, where four feet of broken track has shut down four miles of transit service for, likely, four weeks. For shame.

Get the Popcorn: City of Independence Mulls Lawsuit Over Jackson County Property Taxes

Kansas City and Jackson County have been feuding over the county’s hiked property taxes, and now it looks like there may be more intergovernmental conflict coming—this time between Independence and Jackson County over the same issue. And I am so here for this “Royal” rumble:

One Missouri city is now one step closer to suing the county over property assessments. The vote from the council was unanimous.

This would mark the first time Independence would take legal action for this reason against the county if they (sic) were to sue. The councilman who introduced the resolution calls it unprecedented.

“This county has acted absolutely recklessly, savagely, against the citizens of Independence,” John Perkins, Independence City Councilman, said. . . .

The county says on average, people will see a 30% increase in their property tax but the issue is that many people have seen there’s (sic) go up way higher than just 30%.

A 30 percent property tax increase on average.

It’s also worth noting the backdrop against which this property tax conflict is set. As Jackson Countians grapple with how they are going to pay the added burden stemming from the county’s reassessments of their property, Kansas City, Independence, and Jackson County all are also fighting for the Kansas City Royals to stay put, as the Royals’ current home is geographically advantageous to all three governments. Open internecine fighting between these governments is not great to begin with,* but having that conflict happen at a critical moment in the Royals negotiations is illuminating, if not shocking.

Whether the tone and tenor of the Jackson County property tax conflicts are related to the Royals’ forthcoming decision on a new stadium is not certain. What is certain is that cutting the team a sweetheart deal to stay in Jackson County as the county ramps up taxes on everyone else is going to be a tough sell. Get the popcorn.

*unless you’re, say, the director of government accountability at a local think tank who thinks local governments should feel the pain of accountability more acutely

The Surveillance State Comes to Missouri

License plate reading systems are expanding rapidly in Missouri, as I have been depressed to learn over the past week. They are being used in Springfield, Columbia, throughout St. Louis County, and are expanding in St. Charles. They’re probably being used in lots of other places, too. Law enforcement supports this technology as a tool to solve crimes and catch wanted criminals. I don’t dispute that it helps do both things very well.

But I think this raises a broader concern. Rockwell (not Lew) was right. The surveillance state has arrived quietly in Missouri, which I guess is appropriate when you think about it. After all, nobody expects the Spanish Inquisition. The surveillance state appears to be here in various forms, including license plate readers on public roads and intricate video systems on private property.

Numerous facts and beliefs can all be true at once:

  • I am highly troubled by a government surveillance system tracking our movements.
  • I am well aware that there is no inherent right to privacy on public roadways or in other public places.
  • There is clearly no right to privacy on other people’s property, except for certain spaces, e.g. a bathroom.
  • Private surveillance systems vary from simple ones that most people, including me, are fine with, to much more complex systems that I find highly troubling (even if they are legal).
  • The creation of a comprehensive surveillance system by government has harmful effects on the community even if you trust that the government is only using the system for certain purposes that strike many as legitimate, such as apprehending suspected criminals.
  • Finally, if you do trust the government to only use surveillance systems in appropriate ways, I have a camera system on Pluto to sell you for an unbeatable price. Act now!

Citizens have a right to be free of unwarranted government intrusion and, yes, I count continual surveillance by technology as an intrusion. I would hope that local officials would think twice (or more) about installing these systems in their communities. I also think that the state legislature should consider limits on their usage. I may not have a right to privacy when out in public, but the government also should have no right to track my movements as I go about my life. I am surprised many local officials don’t seem to agree with that.

Government Surveillance, Vetoes, and Missouri Vs. Florida

David Stokes, Elias Tsapelas, and Avery Frank join Zach Lawhorn to discuss more than $500 million in line-item vetoes by Governor Parson, the plan to increase the use of license plate readers in St. Charles County, what Missouri can learn from Florida public policy, and more.

Listen on Apple Podcasts 

Listen on Stitcher 

Listen on SoundCloud

Produced by Show-Me Opportunity

Support Us

The work of the Show-Me Institute would not be possible without the generous support of people who are inspired by the vision of liberty and free enterprise. We hope you will join our efforts and become a Show-Me Institute sponsor.

Donate
Man on Horse Charging