Recent reports may have left the impression that the Osage Beach City Use Tax being submitted to voters on the April ballot is an additional tax imposed on top of the current sales tax.
That is not true.
The use tax can apply to a purchase only where no sales tax is applied. If sales tax is collected, the use tax is not collected, according to Osage Beach City Attorney Ed Rucker.
The decision in Street v. Director of Revenue in 2012 changed the existing practice by prohibiting collection of a local sales tax on a vehicle purchased from an out-of-state vendor. The Department of Revenue will collect the use tax, if adopted, when the vehicle is purchased from an out of state vendor. At registration, vehicle or boat owners will be charged sales tax or use tax, but not both.
The ordinance submitted to the voters is the only option available to address the loss of city revenue caused by the decision in Street v. Director of Revenue. The Department of Revenue’s initial estimate was a loss to the City of Osage Beach of $33,000.00 annually. The City of Camdenton, Morgan County, Camden County and the City of Laurie are all placing use tax proposals before their voters in the April 2, 2013 election.