What is PROP U?

  • PROP U is a ballot issue that proposes to consider imposing the same local tax rate (in the form of a use tax) on out-of-state purchases as local purchases.  
  • You will NEVER pay a use tax and a sales tax on the same purchase.
  • The State of Missouri mandates the local use tax be applied at the same rate as the City’s local sales tax, currently 2.5%.

How does not collecting a local tax on purchases made out-of-state, including online, affect Eureka?

  • In recent years Internet sales have risen from 5% of all retail purchases to over 15% and continues trending up.
  • Cities like Eureka rely largely on sales tax for day-to-day operations.  The Internet has clearly changed the way we communicate, interact and shop.
  • As more and more retail activity moves online, it is vital for local communities to modernize tax mechanisms to better reflect these new realities.
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Submit A Question

Have questions?  Please submit your question and we will forward them to the most appropriate staff person for a response. Questions that are frequently asked will be added to our FAQ section below.