Ellisville residents can expect to find information about the city’s proposed sales tax increase when they bring in their mail, possibly as soon as Saturday.
That’s because the city council last week approved plans to send residents informational pamphlets about the upcoming proposal, which would add a half-percent sales tax, or 50 cents to a $100 purchase, to most local shopping transactions.
The tax is projected to create an additional $800,000 of revenue for Ellisville after multiple city projects were delayed, Mayor Matt Pirrello said, particularly those under the pubic works department.
Pirrello said that if a majority of residents do not approve the referendum, which will appear on the April 5 ballots, Ellisville “will be in a world of hurt,” Pirrello said.
“If it doesn’t pass and Walmart doesn’t come to town, then we’re going to have to make some major changes … Nothing is off the table.”
The proposal is due in part to some residents’ opposition to possibly permitting for a big-box retailer, reducing city services or creating a city personal-property tax, all of which were among potential budget solutions discussed at last year’s town hall meetings.
Pirrello noted that the pamphlets were paid for by the Ellisville Industrial Development Authority – an independent taxing body established by the city.
“So it’s a very neutral, factually-based piece of information,” Pirrello said.
The IDA approved the cost up to $2,000, which Pirrello said should more than cover production and mailing expenses.
If the measure on the April 5 ballots is approved, Pirrello said the tax would take effect immediately.