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Show Me Green Sales Tax Holiday

Tax holiday could be good for you but bad for the city


Posted on Fri Dec 26, 2008
Last updated Dec 26, 2008

 

In an attempt to get more Missourians to go green, lawmakers passed the Show Me Green Sales Tax holiday back in August, dropping the sales tax on energy efficient appliances for a week in April.

 

Its a good thing for you but right now some officials say Columbia shouldn't participate because a loss of sales tax revenue would hurt the city's budget.

 

They say while the no sales tax holiday may sound like a way for people to save money, there may be a better way for shoppers to save while allowing the city to get the money it needs to keep operating.

 

City Manager Bill Watkins says they are already sensing sales taxes will be down this year and while they budgeted conservatively they shouldn't do anything to make the situation worse.

 

Watkins is recommending the City Council not to take part.

He says the city already offers some really substantial rebates on heating pumps and energy efficient air conditions, he says they may look at extending to include energy star appliances.

 

Gary Ennis, of Ennis Appliances also likes the idea of rebates.

 

Ennis points out consumers usually only buy an appliance when their current one breaks down, so just having a week in April without sales tax wouldn't really attract more people to spend.

 

He says offering rebates year round would attract more people to buy energy star appliances.

 

Council member Karl Skala says right now he doesn't know which way to vote.

 

Skala says he is conflicted because this is an energy savings issue and there may be some payback with these appliances, but he doesn't know if it outweighs the difficulty the city is having with sales taxes.

 

Further discussion will happen at the next city council meeting, and a final decision will have to be made by early March.

 

 

 



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