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O’Fallon approves 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 July 9 O’Fallon City Council meeting, Bill No. 7202 sponsored by Mayor Bill Hennessy was passed by a vote of 10-0.  The bill amends chapter 145 of the city code to levy the use tax at the same rate as the local sales tax. 


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