Nixa warns ballot initiative could threaten revenues

Nixa officials are cautioning voters approval of a ballot initiative could mean a revenue shortfall for the city.

On April 4, voters will be asked whether they want to discontinue an existing sales tax on vehicles, trailers, boats and outboard motors purchased from a source other than a licensed dealer in Missouri. Officials said in a news release a discontinuation of the tax would damage the city’s revenue for vital services and give Missouri dealers a competitive disadvantage compared with out-of-state dealers.

The city’s current tax requires residents to pay 1.5 percent on the purchase of all vehicles. A “no” vote on the ballot issue means the tax would stay in place. A “yes” vote would remove the tax from non-Missouri dealers, resulting in a 21 percent loss of revenue, said spokesman Drew Douglas.

Missouri Department of Revenue data cited by the city estimates Nixa could lose 21 percent of its annual vehicles tax revenue, equating to $122,908 a year. Officials say $122,908 annually is equivalent to either three police officers’ salaries and benefits, 17.4 blocks of asphalt street overlay or the entire parks maintenance budget.

“We do not yet know exactly how council and city administration would decide to make cuts if we were to lose this revenue. These figures are given as examples to demonstrate the degree of impact this issue could have on the city,” according to the release from Nixa spokesman Drew Douglas states.


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