Four times a year, on a quarterly basis, Missouri Department of Revenue announces a new batch of local taxing jurisdictions. “Community Improvement Districts” and “Transportation Development Districts” tax areas, which are the most common by far, are typically quite small in size, often ranging from just one business address to a handful in a single shopping complex, and are almost always imposed within corporate city limits. Other times, public service oriented tax areas, known as “Fire Protection Districts” or “Ambulance Districts,” to name a couple, cover the better portion of a county including unincorporated area as well as multiple cities.
This coming April, eight new CID’s and one new TDD will begin collecting an additional 0.5% to 1.0% on purchases made in specified areas within various corporate city limits. Also, another CID which has been in effect for the last six years will be expiring, therefore reducing the total tax collected for purchases within that area by 1.0%. These types of district changes can be found on the DOR website in the Sales/Use Tax Rate section about 1-4 weeks before they go into effect.