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Proposition U - Use Tax

The City Council of the City of Union, Missouri has voted to call a special election on the question of whether to impose a local use tax.  The election will take place Tuesday, April 2, 2024. 

A use tax would ensure that purchases from online vendors located outside of the state are subject to the same local tax rates as those purchases made from businesses located in the City of Union, Missouri.   

It would also help the City maintain its revenue while continuing to provide the services our residents expect. 
Prop U What can city do with revenue - what is use tax


PROPOSITION U  QUESTION  Shall the City of Union, Missouri impose a local use tax at the same rate as the total local sales tax rate, currently 2 percent, provided that if the local sales tax rate is reduced or raised by voter approval, the local use tax rate shall also be reduced or raised by the same action?  A use tax return shall not be required to be filed by persons whose purchases from out-of-state vendors do not in total exceed two thousand dollars in any calendar year.   [   ] YES                                    [   ] NO  If you are in favor of the question, place an "X" in the box opposite "Yes."  If you are opposed to the question, place an "X" in the box opposite "No".

What a Use Tax would mean for Union residents and businesses.
  • Prop U would eliminate the disparity in tax rates collected by local and online sellers by placing the same rate on all sellers.
  • With no local use tax in place, consumers have an incentive to purchase goods and services from online vendors instead of buying locally.
  • If voters approve the Prop U ballot measure, online, out-of-state purchases would be taxed at the same City tax rate as local purchases (currently 2%).
  • It’s estimated that the City of Union would collect $376,000 annually through the use tax.  The funds collected by the use tax would be spent in the same manner as the local sales tax.
  • The use tax funds would be allocated to roadway maintenance, sidewalks, water and wastewater, police, parks, and other city services.
  • With the rise in online sales, the City is seeing a decline in its sales tax revenue.  To keep pace with this trend, the City must modernize its revenue sources to continue to provide the essential services our residents expect.
  • The City relies heavily on revenues from local sales tax to fund basic services, such as roadway maintenance and public safety.
  • Because the City does not have use tax in place, Union has missed out on approximately $1.9 million in tax revenue due to online shopping over the last five years. 


Paid for by the City of Union, Missouri • Jonathan Zimmermann, City Administrator • 10 E. Locust Street, Union, MO 63084