The federal government recently released the 2012 Census of Governments. According to that data, Missouri has the sixth-highest total of local governments of the 50 states. More directly to the issue of sales tax pooling, Missouri has the fourth highest number of municipalities and the fourth-highest number of counties. This is pertinent because many other types of local government (school districts, special road districts, etc.) lack authority to impose sales taxes, but all cities and counties have that authority. With so many cities and counties imposing sales taxes, tax competition can be a major factor in Missouri. Competition is good, but as with many things, it can be taken too far. When it comes to municipal sales tax competition, Missouri has gone too far. In some counties, expansion of the policy known as sales tax pooling is necessary to improve our tax base and limit government involvement in the economy.
About the Author
David Stokes
David Stokes is a St. Louis native and a graduate of Saint Louis University High School and Fairfield (Conn.) University. He spent six years as a political aide at the St. Louis County Council before joining the Show-Me Institute in 2007. Stokes was a policy analyst at the Show-Me Institute from 2007 to 2016. From 2016 through 2020 he was Executive Director of Great Rivers Habitat Alliance, where he led efforts to oppose harmful floodplain developments done with abusive tax subsidies. Stokes rejoined the Institute in early 2021 as the Director of Municipal Policy. He is a past president of the University City Library Board. He served on the St. Louis County 2010 Council Redistricting Commission and was the 2012 representative to the Electoral College from Missouri’s First Congressional District. He lives in University City with his wife and their three children.
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