Proposition U

  1. What You Need to Know
  2. Prop U FAQs
  3. Prop U Facts
  4. Ballot Language
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PropUWebBannerResidents living in the City of Manchester and many neighboring communities will have the opportunity to vote in the April 5 election on Proposition U: a proposal to enact a Local Use Tax on the purchase of online goods by Manchester residents from out-of-state vendors such as Amazon, Overstock.com, or Wayfair. 

The proposed local use tax would be applied to online purchases in the same way that a sales tax is paid on a local purchase.  When individuals make purchases at retail stores in Manchester, they pay the sales tax that is applicable at that location. Purchases by Manchester residents from out-of-state, online vendors go untaxed. For the City of Manchester to receive revenue from online sales, the City’s voters must authorize its collection.

The enactment of a local use tax would ensure that online, out-of-state purchases are taxed the same as purchases made from Manchester’s local businesses. The global pandemic has caused a boom in online sales, forcing local Manchester businesses into an unfavorable position by competing with different tax laws from which large out-of-state online vendors benefit.

If approved by Manchester residents, the City would reinvest new revenues to eliminate the $6 monthly fee charged to residents for waste removal services.