By Connie Whitlock
Publishing Editor
At the January 26 meeting, the council chose to delay the use tax measure and spend more time explaining it to residents before asking for another vote. The decision came after a more detailed discussion on January 12th at a work session about the tax, how it would be used, and any unanswered questions residents may still have.
The proposed use tax would apply to online and out-of-state purchases made by Pleasant Hill residents, for which local sales tax is not currently collected. If you buy something in a Pleasant Hill store, the city collects a 2.75% local sales tax. If you buy that same item online and it’s shipped to your home, the state (4.23%) and the county (about 1.63%) still get their share, but the city does not.
The use tax allows the city of Pleasant Hill to collect 2.75% on purchases made by residents online or out of state. Some would say this is not a tax increase, and others would argue that most online purchases do not include the 2.72 percent at this time, and if the use tax were passed, residents would pay an additional 2.72 percent. The city also argued that, since most commerce is now conducted online rather than in town, it has lost revenue over the years and would like to collect the use tax to support the city budget.
City staff informed council that, based on data from Cass County and the Missouri Department of Revenue, the missing share adds up to about $626,000 per year.
During a January 12 work session, interim City Administrator Nici Wilson pointed to park maintenance as the primary concern. After voters approved Prop P improvements in 2024, the city now faces the ongoing cost of maintaining those upgraded parks. Wilson said current revenue sources aren’t enough to keep the parks at the level residents expect. She also noted the money could support adding a police officer and improving pay to help retain and recruit officers.
But when the public spoke, a different priority emerged: streets and sidewalks.
Several residents said that if the city is asking for new funding, they want to see it clearly directed toward infrastructure rather than park operations.
That led to one of the most profound clarifications of the discussion. Wilson explained that tax revenue is not permanently restricted by law. Even if the city communicates its intent to use the money, a future council or even the current one could legally spend it differently.
Mayor John King added another layer to the conversation. He pointed to proposed changes at the state level, including state efforts to reduce or eliminate parts of the state income tax, eliminate the capital gains tax, and reform property taxes that may limit how local tax revenue grows. He warned that cities like Pleasant Hill could see key revenue streams shrink in the future, making a local use tax more of a financial safety net than a funding bonus.
King also acknowledged that the measure received only about 32% support in the April 2024 election. Cass County results show 1,094 votes were cast on Proposition 4, with 747 voting no and 347 voting yes.
Mayor John King said in a text to PHMOmag, “We need the use tax to be self-sufficient and to improve public safety. Infrastructure should become more proactive, not just reactive, on streets and sidewalks. We use seasonal workers and vendor contracts to help.”
With the April deadline approaching, the council agreed it wasn’t the right time to try again. King also said the city wants to give new City Administrator Kristen Dorman time to get fully up to speed before the issue returns.
Many surrounding areas have already passed a use tax, including Harrisonville and Lee’s Summit.
The use tax isn’t gone. It’s just waiting for a better explanation, and, perhaps, more public trust before it comes back.
