Is this a new tax?
No. Lee's Summit has collected this tax on out-of-state motor vehicles for several years.
How does this impact me?
The tax applies to residents purchasing a motor vehicle, trailer, boat or outboard motors from out-of-state.
Similar purchases made in-state are already subject to the local sales tax regardless of the vote on this ballot question.
How much tax revenue is in question?
The City's portion of the 7.725% sales tax is only 2.25%
What other entities are Impacted by this sales tax election?
- Grain Valley
- Lee's Summit
- Blue Springs
- Central Jackson County Fire Protection District
- Oak Grove
- Lone Jack
Which entities have already approved the continuation of this sales tax?
- Kansas City
- North Kansas City
"Out-of-State Motor Vehicle Sales Tax"
****BALLOT FAILED, HOWEVER THE RESULT OF THE VOTE ALLOWS THE CONTINUATION OF THE TAX
Lee's Summit Parks Sales Tax Election | Presentation | Out-of-State Motor Vehicle Sales Tax Handout
The City of Lee’s Summit will continue the collection of the city’s sales tax on motor vehicles, trailers, boats and outboard motors purchased from out-of-state car dealerships according to the unofficial election results on the Jackson County Election Board website. This was Question 1 on the ballot, which asked whether or not the City should discontinue the collection of this sales tax. Because of the way the question is worded, a majority “no” vote ensures continuation of the sales tax. Lee’s Summit voters also voted on Aug. 2 to extend the ¼ cent Park sales tax for 15 years to fund future capital projects and operations. This was Question 2 on the ballot. To learn more about the Park Board’s eight priorities and 33 goals for the next several years,
On Tuesday, August 2, Lee's Summit voters were presented with two ballot questions. The first was a question regarding the continuation of the Out-of-State Motor Vehicle Sales Tax. The Second question was asking voters to consider extending the ¼ cent Park sales tax for 15 years to fund future capital projects and operations.
Out-of-State Motor Vehicle Sales Tax Question
Lee's Summit voters were asked whether or not to discontinue the collection of the city's sales tax on motor vehicles, trailers, boats and outboard motors purchased from out-of-state dealers.
In 2012, the Missouri Supreme Court Case (Street vs. the Director of Revenue), followed by subsequent state legislation (HB 184/SB182) in 2013, required cities without a use tax (such as Lee’s Summit, Blue Springs, Independence and other municipalities across the state) to receive voter approval to continue sales tax collections on purchases of out-of-state motor vehicles, trailers, boats and outboard motors.
"Shall the City of Lee’s Summit, Missouri, discontinue applying and collecting the local sales tax on the titling of motor vehicles, trailers, boats, and outboard motors that were purchased from a source other than a licensed Missouri dealer?"
Approval of this measure will result in a reduction of local revenue to provide for vital services for the City of Lee's Summit and it will place Missouri car dealerships of motor vehicles, outboard motors, boats, and trailers at a competitive disadvantage to non-Missouri dealers of motor vehicles, outboard motors, boats and trailers."
The tax only applies to you if you purchase a motor vehicle, trailer, boat or outboard motor from out-of-state.
The existence of the tax creates a level playing field for Missouri car dealerships. If the existing tax were to end, Missouri car dealerships would be at a competitive disadvantage with out-of-state car dealerships which would no longer be required to collect the tax.
Voter approval to continue the tax is needed at a future date for Lee's Summit to continue to collect taxes on out-of-state motor vehicles.
What if I vote NO?
What if I vote YES?
- Allows continued collection of existing sales taxes.
- Keeps licensed Lee's Summit car dealers competitive with car dealers located out of state.
- DOES NOT authorize new sales taxes.
- Eliminates collection of city sales taxes on motor vehicles, trailers, boats and outboard motors purchased out of state.
- Reduces local revenue that pays for city services.
What Impact does the tax have on Lee's Summit Revenues?
The city's portion of the combined 7.725% sales tax rate is 2.25%. The impact to revenues if these taxes go away is estimated to be as high as $880,000 annually based upon past purchases from out-of-state car dealerships.
The taxes received on the purchase of motor vehicles, trailers, boats and outboard motors are directed to specific funds, which are listed below:
- General Fund: 1% - Pays for basic city services such as police, code enforcement and inspections.
- Transportation Fund: 1/2% - Pays for general maintenance of streets, including the annual slurry seal and overlay program.
- Capital Improvements Fund: 1/2% - Pays for road projects identified in the city's 10-year Road Plan.
- Parks & Soils Fund: 1/4% funds Lee's Summit Parks & Recreation projects.