Use Tax - What is it? Why is it so Important?

The Municipal Election is now only 3 weeks away. Due to CoronaVirus, Governor Parson moved this election from the first Tuesday in April to June 2nd.  The election has two wards which have contested races and two wards which have write-in candidates, all are vying for a position on the City Council.  Also, on the ballot is a proposition to approve a Use Tax to generate much-needed revenue for the City.  A few weeks before the April election I shared a blog on this site to explain the effects that the Use Tax would have on individual citizens.  While this tax is, without a doubt, the most misunderstood tax, the impact on individual households will be virtually nonexistent.  A citizen is only required to pay a use tax after purchasing more than $2,000, within a single year, from out-of-state businesses. Then, it is that citizen’s responsibility to self-report those purchases to the state.   

Why is the Use Tax important to the City of Park Hills?  The City has been deficit spending for the past five years.  This deficit spending is the result of too many projects using borrowed money, and an exceptionally large project that was poorly conceived and improperly funded.  Everything, including the kitchen sink, has been cut from this year's budget and still, an additional $100-$150 Thousand dollars in cuts are needed.  Since mid-March, the CoronaVirus has invaded our county causing an economic shutdown. Estimates for the coming months are now showing a 20% reduction in tax revenues across the state.  If the Use Tax is passed by you, the voters, I predict it will generate as much as $50,000 in new revenues for the City.  As the old saying goes, “every little bit helps”.  

It has been said on several public forums that the City is broke.  I am here to tell you we are not out of money, nor have we defaulted on any of our loan payments. The City's cash reserve funds have dropped from about $4.5 million to $1.5 million over the past 5 years. For this reason, we must have a balanced budget next year. Personnel and public services are the only things left to cut if additional cuts are needed. Several employees have quit since last fall and have not been replaced. Along with that, this year’s budget for street paving has been cut in half. The City is blessed to have some of the best employees I have ever had the pleasure to work with. They are conscious workers who are willing to do whatever it takes to get the job done for the Citizens of Park Hills.  

I am asking you to Vote "YES" on the Use Tax Proposition on June 2nd.  The City strongly needs this issue to pass.  Together we can make Park Hills financially sound again!

Mark McFarland

City Administrator