Russellville voters keep vehicle tax

Russellville residents will continue to pay local use taxes on vehicles and boats.

Only two of the 35 people casting ballots during Tuesday's election said no to the city's Proposition A, resulting in a 94.29 percent favorable vote and only 5.71 percent voted against it.

For years, Missouri communities added their local sales taxes to the state's taxes on vehicle purchases from unlicensed Missouri dealers or out-of-state dealers.

However, a January 2012 state Supreme Court ruling said those taxes were illegal unless the voters had approved a "use" tax for purchases made in other states.

Use taxes "are imposed on out-of-state purchases of tangible personal property by Missouri residents using the property within the state," the seven-member high court ruled, in a unanimous opinion.

The court said use taxes "are complementary to sales taxes, in that they minimize the incentive to purchase from out-of-state sellers by equalizing the tax burden on intrastate and interstate transactions."

In response, lawmakers later modified state law and gave cities and counties until this November to enact use taxes to go with their sales taxes, in order to continue collecting them on the out-of-state purchases of motor vehicles, trailers, boats and outboard motors.

The tax is collected at the time the state Revenue Department issues a title for the vehicle or motor.