St. Louis County weighs reviving an online purchase use tax amid projected 2026 budget gap

Measure targets online and out-of-state purchases that do not collect local sales taxes

St. Louis County leaders are again considering whether to ask voters to approve a local “use tax” on certain online and out-of-state purchases, reviving a proposal that failed when it last appeared on the ballot in April 2022. County officials say the renewed push is tied to a projected budget gap for 2026 and comes as the county has begun cutting or reducing public-facing services.

The proposal under discussion would apply the county’s local sales tax rate to taxable goods purchased from sellers that do not already collect the county’s local sales taxes at checkout. Supporters describe the measure as a way to reduce differences in how purchases are taxed depending on whether a resident buys from a local store or from an out-of-state seller.

Revenue estimates and service impacts

Backers of the ballot measure have cited annual revenue estimates ranging from about $45 million to $75 million if a county use tax is adopted and implemented. County Executive Sam Page has backed the concept publicly as part of broader efforts to stabilize county finances.

The debate has unfolded alongside service changes announced in recent weeks, including the closure of the county’s Chesterfield satellite government office and reductions in hours at other county government centers. Those actions have been discussed in the context of planning for the 2026 budget and aligning spending with recent department-level cost patterns.

County officials have described the use tax proposal as a recurring option to address structural budget pressures without relying solely on spending cuts.

What the “use tax” would and would not do

A local use tax is designed to complement the existing sales tax system. It generally applies when a buyer owes tax on a taxable purchase but the seller did not collect local tax at the point of sale. Missouri already requires certain remote sellers to collect and remit the state’s sales tax when thresholds are met; a county-level use tax would focus on capturing the local portion in applicable transactions.

• Applies to: Taxable goods purchased from out-of-state or online sellers that do not collect local sales taxes.

• Does not create: A new tax category on items that are not already taxable under state law.

• Goal: Align tax treatment between many remote purchases and in-county retail purchases where local sales tax is collected at checkout.

Ballot timing and prior voter decision

County lawmakers have discussed placing the question on an August ballot rather than a stand-alone spring election, a change that can reduce election administration costs because countywide primaries are already scheduled. The county’s last countywide vote on a similar use tax question ended with the measure rejected by voters in April 2022.

The current proposal remains subject to council action on whether to advance ballot language and set the election date. If approved for the ballot, voters would ultimately decide whether the county adopts the use tax and, by extension, how much the measure could contribute to closing the projected 2026 budget gap.