Use Tax Information Campaign

The proposed county use tax is a direct extension of the Wayfair framework to allow collection of taxes on remote sales. Introduction of the use tax will ensure fairness for local businesses, capture lost revenue, and strengthen the region’s economic competitiveness.

The attached spreadsheet provides an estimate of the potential revenue generated by a St. Louis County use tax based on 2024 historical retail sales data. Using a national average of approximately 16% of retail sales occurring through online or out-of-state purchases, the analysis projects total use tax revenue of approximately $118.4 million annually across all existing sales tax categories.

A significant portion of this revenue—approximately $70.0 million—would be distributed to St. Louis County. This is particularly important given the County is currently facing an estimated $40 million budget deficit, placing increasing pressure on core services and long-term financial stability. The use tax would provide a substantial and ongoing revenue source to help stabilize County finances without increasing property taxes or reducing vital services.

Other taxing districts would also benefit from the county use tax, as their revenues are collected and distributed through the County:

· Municipalities: approximately $35.4 million (about $50.58 per capita)

· St. Louis Zoo: approximately $4.2 million

· Great Rivers Greenway: approximately $3.9 million

· Park Grant Commission: approximately $1.7 million

· Emergency Communications Center: approximately $3.4 million

It is important to note that this estimate is conservative. It reflects only historical retail sales data and does not include additional revenue from commercial or business-to-business out-of-state purchases. Inclusion of those transactions could increase total revenues by an estimated 50% to 70%, significantly enhancing the fiscal impact for the County.

Overall, the use tax captures revenue that is currently not collected locally, helping modernize the tax structure and ensuring that both County and municipal governments can keep pace with today’s economy while supporting essential public services and regional assets.

Use the following materials to support the Use Tax campaign in your communities.