06/16/2026
Some facts you should know about the proposed DTCID Sales & Use Tax, benefiting Dutchtown.
Our proposed Sales & Use Tax is a shared community investment with strategies (such as exemptions) to minimize its impact on low-income residents.
The facts are below, so that voters can make educated decisions rather than relying on half truths, innuendo or gossip that just creates fear and distrust.
No one likes adding tax, but a CID sales tax is not a blank check or general revenue tax; it is a locally bounded, voter-authorized tool with a stated rate, stated purpose, and dedicated use for improvements and services inside the district only.
• The DTCID Sales Tax has been voted into existence already by our neighborhood and others at a general election. It now needs approval to start implementing it.
• This Sales Tax initiative has not been created behind closed doors or without public knowledge, as some may imply.
• It has been on our Public Agenda and discussed at open Public Meetings 9 times between June 23, 2025 thru May 26, 2026
• It has been approved by the DTCID Board in a Resolution at a public meeting as required by statute.
• It has been distributed on the schedule set by state law to ensure any approved tax is implemented in 2027. It has been mailed to registered voters within our DTCID footprint, as shown on the voter rolls provided by the City of St. Louis Board of Elections, following all best practices.
The reason to support this Sales & Use Tax is that it is narrowly targeted to benefit this district and to identified improvements or services/projects, rather than going into the general fund. It distributes the tax burden AWAY from being only paid by those in our District, to include taxes received on sales to visitors and businesses outside our District, for community projects.
We believe that District Improvements are worth significantly more than the marginal 1% cost.
SOME FAQs
1. Is this in addition to the Property tax that is already in place?
a. No, the property tax is going away this year, so it is critical to implement the small 1% sales tax on goods sold in the district, to replace it so that we have stable income to provide services such as additional trash collection and free safety cameras. The rate is limited, and the revenue is dedicated to specific improvements.
Most CIDs have both types of income, since property tax is a little more stable than Sales Tax. But generally both types are needed to fund significant benefits. The great majority of CIDS in St Louis neighborhoods are funded by a sales tax and a property tax.
Since its formation in 2017, the Dutchtown CID has been the largest district in the state of Missouri, but with the smallest budget of any CID, since we only had a property tax.
2. Who pays the Sales Tax?
a. Broad-Based Participation: A Sales Tax spreads out the collection of revenue to anyone purchasing products within the district, no matter where they live, businesses or visitors alike. Significant funds may add up from bulk business purchases made at manufacturers in our District. HOWEVER, the revenue MUST be spent hyper-locally, ONLY in the DT CID District. It cannot be spent anywhere else.
3. Who controls the revenue and where is it spent?
a. Local Control & Accountability: Revenue stays in the district and can be directed toward neighborhood priorities (safety, beautification, infrastructure, business support). Oversight remains with the local CID board, with volunteer representatives from each area of the district.
4. Why do CID districts use a Sales Tax in addition to a Property Tax?
a. Fairness Compared to Property Taxes Alone: Currently ALL revenue for the DTCID comes from property taxes, which is generally hundreds of dollars per property owner, annually, no matter what their income or stage in life. A retired person on a fixed income may be paying several hundred dollars a year.
b. Our DTCID Property Tax income is going away this year. The Dutchtown CID would have NO funding if we do not have the Sales Tax.
c. The tax we had was limited just to property owners on the footprint, so it was a significant burden on only one group of residents - generally hundreds of dollars a year per property. Income from businesses with larger sales, will generate a larger amount of Sales Tax. This is especially true for businesses who sell /manufacture consumer packaged goods in bulk. Dutchtown has a number of those businesses. The businesses do not pay it, the customer pays 1 penny on the dollar, which is passed on to the CID.
5. What are some of the uses of a Sales tax in the Dutchtown District?
a. Economic Development Tool: Funds support improvements (clean streets, lighting, safety programming, events, marketing) that attract investment and create a cycle of neighborhood growth. We currently fund additional Trash pickup by a private company, 2 x a week, throughout the district, for about $35,000 a year. If the CID revenue disappears, we will not be able to continue that service.
6. Doesn’t a Sales Tax hurt the lowest income members of the community?
a. Balanced Funding Approach: ALL purchases using WIC and Snap benefits will be TOTALLY EXEMPT from the DTCID Sales Tax to benefit the economically disadvantaged. The least affluent are generally making smaller purchases, paying smaller tax, whereas those with more disposable income, or large businesses making larger purchases, would pay a higher amount of sales tax. Its 1% of the taxable goods only..
b. All the City CIDs in neighborhoods surrounding Dutchtown have a CID Sales Tax, creating revenue for their neighborhoods that is 3-4 times larger than ours, and allows them to have much more impact in their Districts. Cherokee, S Grand, Soulard, St Louis City, are some of them.
So you can think of this as low impact, producing high revenue.
b. Low Impact: For example, on a Snap food purchase there will be NO tax.
On a taxed item, a customer buying a $1 bracelet at a convenience store with cash, will pay an extra 1 cent on the purchase.
This is only a 1% tax on taxable goods.
c. High Return: On the other hand, a vendor buying $10,000 worth of product from one of our manufacturers will pay $100 into our fund. DTCID tries to combine tax revenues with grants, philanthropy, and partnerships to reduce reliance on any single source.
7. If approved, when will it start?
a. Prep Time: October 1st would be earliest implementation of the sales and use tax, allowing enough time for the State to implement it with businesses.
8. Why is the proposed Sales Tax a 40 year duration?
a. To align with the duration of our CID: Our CID has a 50 year term. We are at the 10 Year point right now, so the sales and use tax is for the remainder of the 40 year life of the CID.
If this Sales Tax is NOT approved, DTCID will have NO funding, since the current Property Tax is going away this year. The Sales Tax is REPLACING the property tax.
Dutchtown will lose such services as the Connected Dutchtown Safety Camera system & merchant Smart Badges, and weekly Trash pickup.
9. Isn’t the city already supposed to be paying for these improvements?
a. A CID is not supposed to replace basic city services. It provides supplemental, extra improvements or services above the normal baseline. The CID does not let the city walk away from its responsibilities. It lets the district add improvements beyond the citywide baseline.
Further questions about the Sales Tax Initiative may be directed to Ryan Prisock of Lewis Rice, [email protected] or 314-444-7717.
