WEBB CITY, Mo. — A local town is seeing a jump in tax revenue adding up to tens of thousands – the results of a change in how we’re shopping.
Annie Golden, Online Shopper, said, “I buy all kinds of stuff.”
Annie Golden is a big fan of internet shopping.
“I do books, especially since the school year has started – I did a lot of school supplies – I do a lot of clothing online.”
Golden is part of a big 2020 trend.
North American eCommerce sites have seen an average jump in traffic of 125% since March, according to website DigitalCommerce360. It’s a jump Webb City is benefiting from.
Carl Francis, Webb City City Administrator, said, “It definitely has an increase right now and we believe the increase is attributed to the pandemic and people doing more shopping from home.”
Webb City has an online sales tax, called a use tax.
“2.5%. The use tax is the sames sales tax applied to online purchases as it would be anywhere here in town.”
And those totals are rising.
Compared with 2019, Webb City has seen an extra $82,000 since April, the first month of Missouri’s Stay at Home order related to the coronavirus.
Good news for the city budget, especially when you factor in losses affecting other cities which aren’t happening in Webb City.
“A lot of that loss is from entertainment dollars and the city of Webb City, we don’t have a lot of, a lot of large restaurant areas, theaters and that kind of thing.”
The use tax increase is averaging 18%, a number that could change by the end of the fiscal year.