Crestwood Board of Aldermen votes to participate in 'Sales Tax Holiday'
The city of Crestwood will be one of the few municipalities in St. Louis County participating in a "Sales Tax Holiday'' from 12:01 a.m. Friday, Aug. 13, to midnight Sunday, Aug. 15.
During that time, the city will not collect tax on all clothing and shoes priced less than $100 per item, school supplies priced less than $50 per purchase, computer software less than $200 per item, and computers and computer equipment less than $2,000 per item. City sales taxes that will not be collected during the holiday are a quarter-cent local-option tax, a half-cent capital-improvements tax, a half-cent parks and stormwater tax and a quarter-cent fire protection tax.
Although given the option by the Missouri Legislature to "opt out'' of the "Sales Tax Holiday'' that has the potential of costing Crestwood an estimated $6,000 to $9,000, the Crestwood Board of Aldermen voted unanimously June 22 to participate in the holiday.
Ward 4 Alderman Tom Fagan said "... I think we do have financial difficulties here. Everybody's in agreement with that. Notwithstanding that, I think it would be good for the city of Crestwood to say to residents and nonresidents alike: 'Hey, this is one opportunity for you to come back if you don't shop here anymore, or if you've never been here, why don't you come and try us?'
"Because if all these other communities are not participating, it seems to me you can't do a static and/or a linear analysis to figure out that we're going to lose $6,000 to $9,000. We may gain some additional revenue because not everything's excluded, according to the memo, from sales tax ...''
As of mid-June, the St. Louis County Municipal League reported that 31 municipalities in St. Louis County had decided not to participate in the holiday, according to a June 22 memorandum submitted to the Board of Aldermen by City Administrator Don Greer. Among the municipalities not participating are Brentwood, Clayton, Des Peres, Fenton, Glendale, Kirkwood, Ladue, Manchester, Maplewood, Marlborough, Shrewsbury and Webster Groves.
The County Council has been asked to reconsider its earlier position to participate in the holiday with regard to the countywide 1 percent sales tax, the memo stated.
Ward 3 Alderman Don Maddox said he hopes that Sunset Hills opts out of the holiday as well when that city considers the issue so that shoppers go to Crestwood instead.
The "Sales Tax Holiday'' was enacted by the state Legislature to relieve Missourians from paying sales tax and stimulate the retail economy by attracting shoppers from border states. The holiday is expected to save Missouri families as much as 9 percent on back-to-school items or $3 million statewide.