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O’Fallon introduces bill to codify use tax

On June 2, O’Fallon voters approved Proposition 1 by a vote of 54.81% “yes” to 45.19% “no,” thus approving a use tax equal to the same rate as O’Fallon’s sales tax, currently 2%.

The use tax will be levied on purchases from out-of-state vendors and is estimated to bring the city an additional $3.5 million to $3.9 million in funds each year. Those funds are mandated for the Police Department and road maintenance only.

At the June 25 O’Fallon City Council meeting, Bill No. 7202 sponsored by Mayor Bill Hennessy was given a first reading. The bill would amend chapter 145 of the city code to levy the use tax at the same rate as the local sales tax. If normal process and timing is followed, second reading and vote for passage would be at the council meeting on July 9.

Mid Rivers Newsmagazine published detailed stories about the Use Tax on Oct. 7 and Dec. 23, 2019, and Feb. 12 and May 43, 2020.

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