St. Louis County voters reject online sales tax measure
Small business owners say failure of Prop U leaves uneven playing field with online retailers
ST. LOUIS, Mo. (First Alert 4) - St. Louis County voters rejected Proposition U on Tuesday, a measure that would have extended the county’s sales tax to online, out-of-state purchases.
Only 35% of county voters supported the use tax, which was projected to generate at least $110 million, with $70 million going to the county’s general fund. County voters also rejected a use tax in 2022.
Small businesses weigh impact
Advocates said the measure would have leveled the playing field for small businesses competing against out-of-state online retailers. Currently, those out-of-state purchases are not subject to the county’s 3.5% local sales tax.
Laurie’s Shoes in Glendale, which is celebrating its 75th year in business, is among the local retailers that said the measure mattered to them.
“I would love for that playing field to be even and allow us to compete with that,” said co-owner Scott Waldman. “Web business is always a concern of ours, we know it’s there, but if that would have passed, it would have put a tax on some of those out-of-state sales.”
The store said online competitors present an ongoing challenge, particularly when customers use in-store services before purchasing elsewhere.
“The tax makes a difference, they could measure here and then go and buy it somewhere online,” said Waldman.
Store focuses on in-person experience
With the measure’s failure, Laurie’s Shoes said it is focusing on what it can control as a business that depends heavily on in-person sales.
“We know the realities of life and we know what we’re up against,” Waldman said. “We really work hard, Patty and I, to be that much better in store, brick and mortar, to be better at what we do, offer more than — well it’s hard to beat what they offer out there, usually it’s everything — but we really try to offer things that are more unique and we fit and measure and hope that’s the differential advantage that will beat that tax.”
The store is also preparing for the upcoming tax-free holiday weekend, which a representative described as “probably one of our busiest weekends of the year,” with 15 staff members expected on the sales floor.
The failure of Prop U could have major implications for county operations according to County Executive Sam Page
Copyright 2026 KMOV. All rights reserved.
