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April 4, 2019Albany, MO |  By: Ryan Elliot

The City of Albany passes a use tax

The city of Albany passed a local use tax during Tuesday's election.
The tax will apply the standard local sales tax in Albany to online purchases. Albany City Administrator Derek Brown says the tax won't have a major impact initially but it will as the city looks toward the future.

"We do anticipate, as people's shopping habits change over time, that it will become more and more a part of the tax revenue on taxable sales.  And at the behest of most likely sales tax - common sales tax - you know, that funds streets and parks and things here in Albany.  So we're going to distribute the use tax in the same way that are sales tax is distributed."

Brown adds the tax will level the playing field between local businesses and online retailers.

"A brick and mortar retail establishment here in Albany was at a 2% sales tax advantage or I should say that the 2% sales tax that the city imposes was something that they had to charge.  And online retailer didn't.  There's so many things you can buy online now, even perishable groceries.  You know, it simply was not fair for our local brick and mortar establishments to be at a disadvantage from a taxing perspective."