Sales Tax

The tax levied at the point of sale.

About

A Sales Tax can be implemented that provides dedicated funding to stormwater projects. Often these sales tax increases include other project funding areas like safety (police, fire, etc.) or parks and recreation projects.

Local sales tax increases typically require voter approval. Since no one likes paying more in taxes, plenty of upfront research, public education, and marketing is vital for the success of a sales tax initiative. 

Be upfront about how the funds will be used. Highlight the great projects and community benefits that will come from the projects funded through tax dollars.

Make the case, early in the process, for the increased tax. Show the residents how much more an average household will pay in a year (it is typically pretty low), and then quantify and share how much benefit each family will get from the projects that are implemented.

Consult your municipal attorney prior to moving forward with taxing opportunities.


 Project Examples

Eureka, MO

The city of Eureka passed Proposition E in April 2019 authorizing a 0.5% sales tax, limited by state law to “public safety.” The sales tax is projected to generate $15.9 million for public safety projects over 20 years. The tax will cease in 2038. The Eureka Board of Aldermen approved three projects for funding with these tax dollars:

  • Allenton Bridge
  • Flood Mitigation
  • Replacement Police Building
  Ashland, MO

In 2018, the City of Ashland approved (67%) a half-cent sales tax increase to fund stormwater and local park projects as well as expand the police force.

 

Consult your community’s attorney and financial advisors prior to moving forward with any of these funding options. Any reference in this website to any person, or organization, or activities, products, or services related to such person or organization, or any linkages from this website to the website of another party, do not constitute or imply the endorsement, recommendation, or favoring of companies or organizations.