Commissioners consider 1 cent metered utility tax

The Ozark County Commissioners are considering implementing a 1 percent tax on metered domestic utilities including propane, electricity and – for those on municipal water systems rather than private wells – water. If enacted, the tax would add $1 for every $100 of propane, electricity metered water purchased by residents inside the county. It would not apply to telephones or cell phones.

According to Missouri Statute 144.032, counties or cities may impose sales tax on utilities by passing an ordinance. The tax does not require local voter approval. Ozark County’s current utilties sales tax was enacted by ordinance in 2013. Income from the tax helped the county weather expenses associated with the historic 2017 flooding, commissioners said. 

The additional 1 cent tax on metered utilities that the commission is now considering “is not really a new additional tax,” said Turner. “Those metered utilities were always subject to sales tax. We had just chosen not to collect it. We can choose to tax metered services or not. We currently tax 1 cent on utilities, and the income is split between the Road & Bridge Department and the general revenue fund.” 

If the commission opts to collect 2 cents sales tax per $100 in metered utilities, the additional income “will be split between the general revenue fund and law enforcement – the Ozark County Sheriff’s Department,” Turner said.  

The additional revenue is needed, the commissioners say. “Even if sales tax is flat, bills are not,”said Ozark County Clerk Brian Wise, adding that the county is operating “paycheck to paycheck.”

“The way the cash flow is, a lot comes in later, but bills come in monthly. Everything from paper clips and office supplies to sheriff’s vehicles and motor graders goes up every year. Our sales tax income has been pretty flat the last few years, and Ozark County lives on sales tax.”

Although the county has managed to keep a balanced budget, the commissioners have serious concerns about being able to keep up with rising costs in the future while sales tax revenue stagnates. Turner said that, when a deputy left the sheriff’s department last year, Reed decided not to fill the vacancy due to financial concerns and budgetary restrictions. 

Another challenge for the county is the $139,000 salary required since the voters elected several years ago to switch from a part-time to a full-time prosecuting attorney, Turner said.

“I don’t think people realized what it was going to cost to have a full-time prosecutor,” he said. “The salary is set by the state – but it’s not paid by the state.” 

Like Ozark County, Douglas County has a full-time prosecutor, Turner said, but Howell County has a part-time prosecuting attorney.  

The county also collects property taxes, but about 88 percent of that income goes to the schools, Turner said.  

If enacted, the commissioners estimate the tax on metered utilities would bring in an additional $80,000 annually.

Although they have the power to enact the utility tax at any time, the commissioners hope to get Ozark Countians on board, and they’re seeking public input on the issue as they continue to consider the possibility. Those wishing to share their questions or comments can attend a weekly meeting at 9 a.m. Mondays. Or they can contact the commissioners’ office at 417-679-4096.

Ozark County Times

504 Third Steet
PO Box 188
Gainesville, MO 65655

Phone: (417) 679-4641
Fax: (417) 679-3423