Proposition U

We understand that you may have questions regarding Prop U. Here's a list of FAQs.

What is a local Use Tax?

A Use Tax is a tax on the purchase of goods by Missouri residents from out-of-state, online retailers.

I already pay sales tax. Is this the same thing?

No. Manchester's current sales tax applies to purchases made in Manchester while the local use tax applies to online sales. Purchases cannot fall into both groups and cannot be taxed twice.

How can a Use Tax benefit my community?

If approved by Manchester residents, the City would reinvest new revenues to eliminate the $6 monthly fee charged to residents for waste removal services. A local use tax ensures out-of-state purchases are taxed at the same rate as purchases from your local business. As internet purchases increase, local revenues decrease. Funds generated from the use tax can be used to pay for vital municipal services.

What is the rate of the Use Tax?

The proposed use tax rate is the same rate as the Manchester sales tax rate, which is 1.25%. Any change to the local sales tax would also change the rate collected for the online use tax.

Here are a few fast facts about Prop U.

• If approved by Manchester residents, the City would reinvest new revenues to eliminate the $6 monthly fee charged to residents for waste removal services.
• If you already pay local sales tax on a purchase, you will NOT pay a Use Tax on the same purchase.
• The local Use Tax rate is the same amount as the sales tax rate of 1.25%.
• A local Use Tax ensures out-of-state purchases are taxed at the same rate as purchases from your local business.
• Nearly every City in west St. Louis County will have a local use tax ballot proposition on the April 5th ballot, including St. Louis County.
• Funds generated will help pay for public safety, roads, sidewalks, parks, and emergency vehicles/equipment.

The language on the Municipal Election ballot will read as follows:
 

"Shall the City of Manchester impose a local use tax at the same rate as the total local sales tax rate, provided that if the local sales tax rate is reduced or raised by voter approval, the local use tax rate shall also be reduced or raised by the same action?"

If you have questions, please reach out. 

To learn more or to ask questions on how Proposition U could benefit you, the community, and Manchester’s local businesses, please call Mayor Mike Clement at 314-680-9278 or City Administrator Justin Klocke at 636-227-1385 x106. Register to vote in the April 5, 2022 General Municipal Election by visiting www.manchestermo.gov/voterregistration.