St. Louis County Executive Sam Page signed legislation Friday placing a county use tax on the August 4 ballot, setting up a vote on a measure that county officials said could generate between $50 million and $75 million a year from remote purchases.
If approved by voters, Proposition U would impose a 2.263 percent use tax on purchases made from out-of-state or online sellers when no local sales tax was collected at the time of sale. The proposed rate matches the county’s existing sales tax rate.
County officials said the measure is intended to address budget pressure facing the county government. According to county projections, St. Louis County faces recurring budget shortfalls of more than $50 million a year. A 2025 audit found that county reserves had been sharply reduced.
Page said residents would decide whether to approve the tax as the county considers how to respond to its budget challenges.
A use tax is designed to complement the sales tax by applying to purchases made outside the county for use inside the county when local sales tax was not collected at the point of sale. Under the proposal, the county tax would be added to Missouri’s 4.225 percent state sales tax, bringing the combined rate on affected purchases to 6.488 percent.
County officials said the measure would apply to remote purchases where sellers do not already collect the county’s local tax. Since the 2018 U.S. Supreme Court decision in South Dakota v. Wayfair, states and local governments have expanded tax collection requirements for remote sellers. Missouri officials have said more than 80 localities in the state have adopted use taxes since that ruling.
The county’s proposal comes after local officials said e-commerce has reduced growth in traditional sales tax collections. County budget documents show that online shopping has become a larger share of retail activity in recent years.
The county’s annual budget is about $1.25 billion. Officials have said the government faces pressure from public safety costs, infrastructure needs, and other recurring expenses. In October 2025, Page announced a funding gap that county leaders said was addressed temporarily through one-time transfers and other measures.
The ballot measure passed the county council with support from members who said the county needs a new revenue source. Councilwoman Kelli Bangert, who sponsored the legislation, said earlier efforts to bring a use tax to voters had not succeeded and that the council needed flexibility in deciding how any new revenue would be spent.
The measure also drew opposition from some council members. Republican Councilman Dennis Hancock said he believed the county should show it can reduce spending before asking voters to approve more revenue. He also said revenue from the tax would not begin arriving immediately. Democratic Councilwoman Shalonda Webb said she opposed the proposal because it would place the revenue in the county’s general fund without dedicating it to specific programs or projects.
Under the ballot language approved by the county, revenue from the tax would go to the general fund. That would give the county council authority to decide how the money is allocated through future budget decisions.
Supporters of the proposal said the tax would also address differences between local stores and remote sellers. Charlie Hinderliter of St. Louis REALTORS said the measure would help create parity for businesses operating in the county.
Under Missouri law, some remote sellers that meet state economic thresholds are already required to collect and remit sales and use taxes. State officials use a centralized system for collection and remittance. Large online retailers and major e-commerce platforms already collect Missouri sales tax on many transactions.
The county estimates the tax would apply to a large volume of remote purchases made by county residents. Revenue projections presented by officials are based on e-commerce activity data and assumptions about collections through seller remittance and taxpayer reporting.
The proposal follows a broader pattern in Missouri, where local governments have increasingly turned to use taxes as online retail sales have grown. Some Missouri jurisdictions have approved similar taxes in recent years, while others have rejected them at the ballot box.
Voters in St. Louis County will decide the measure in the August 4 primary election. If approved, the county would begin collecting the tax under the timetable set by state law, with county officials saying the revenue would be used to support general county operations as future budgets are developed.
Source: ‘Fairness’ tax coming to ballot in St. Louis County addressing ‘pressing budget challenges’ | The Heartlander