By Colleen Hogan
Monday, June 22, 2009 at 2:04 a.m.
Read more: Local, Business, Consumer, State, Fact Finder
JEFFERSON CITY -- UPDATE: Monday June 29:
To attract the new Walmart to Jefferson City, the town agreed to put in a new highway exit, roundabout and roads leading to the store.
The city created a TDD or Transportation Development District so that the Walmart could charge one percent extra in sales tax to pay back the construction costs.
KRCG has discovered the Walmart wasn't charging the extra tax.
After KRCG’s story aired, a Walmart spokeswoman called KRCG to report that they had looked into the matter and discovered the error. She said they would start charging the increased tax soon.
UPDATE, Monday 7:30 p.m.:
No clear answers today on the sales tax rate the new Walmart in Jefferson City should be charging.
After KRCG's report aired Sunday night, Jefferson City's Finance Director Steve Schlueter called Walmart Corporate's tax division Monday Morning.
Schlueter reports that Walmart's Corporate office initially seemed unaware of the extra TDD tax but said that they would look into the matter.
Later Monday, a Walmart spokeswoman called KRCG to report that they had looked into the matter and admitted that an error was made in not collecting the 1% extra tax. She said that the east Jefferson Store would immediately re-program its cash registers to start charging the tax.
However, within an hour both Schlueter and the Walmart spokeswoman called back to say that it is unclear when the store is supposed to start charging the tax and that they needed more time to look into the situation.
Walmart says it will charge the regular tax until things get figured out.
CORRECTION, Monday 9:30 a.m.:
A previous version of this story included incorrect information about O'Donoghue's Steaks and Sea Food.
The restaurant was incorrectly identified as part of a TDD (Transportation Development District) that charges 1% extra sales tax.
O'Donoghue's restuarant does NOT charge extra sales tax. While the restaurant is part of a TIF, Tax Increment Financing, no increase in sales tax is passed-on to the customer.
KRCG regrets the error.
ORIGINAL STORY:
A viewer concern prompted the KRCG Factfinder team to look into the sales tax rate at the new Walmart in Jefferson City.
The viewer wanted to know if he was paying more sales tax at the new location than at the old Walmart on Missouri Blvd.
It took a lot of tax dollars to get the new Walmart up and running, including a new highway exit, new roads, and a new round-about.
For MODOT to get paid back for its investment, the new Walmart is part of a Transportation Development District and can charge an extra 1% sales tax to pay back the state.
But when we stopped buy the store Sunday the receipts show that the eastside walmart is not charging the extra tax.
Steve Schlueter, the finance director for Jefferson City said the new Walmart should be charging one cent extra sales tax, from the normal sales tax rate of 7.725, to the increased rate of 8.725.
"It's a way of recapturing part of the cost, and yes, citizens do pay for that, but it's a way of paying for part of the infrastructure costs that would not have been undertaken if a new business not come,” Schlueter said.
|
But the increased sales tax was not listed on our receipt from the new store. We bought the same two items from both Walmart stores, and on those items, a citronella candle and a pack of gum, the tax rate shown on the receipt was the normal sales tax rate. There was no increase.
A customer service associate at the new store told us that the store's register system is up to date, and a store manager also told us that the sales tax listed on our receipts was correct.
These additional taxes are nothing new to Jefferson city. City finance officials say you're paying more in sales tax to shop at the Kohl's on Missouri Blvd.
