Proposition U, which would have levied an additional 3.5% use tax on online sales, received just 35% of the vote in final unofficial results in St. Louis County on Tuesday, well below the simple majority needed. The total tax charged on online sales would have been equal to the sales tax charged on in-person purchases.
County voters also rejected a use tax in 2022, though by a narrower margin than Tuesday's results.
The tax had been expected to generate at least $110 million, with the county receiving about $70 million for its general fund. That would have been a major relief to elected officials who are staring at a deficit of at least $50 million in next year's budget.
Spending has outpaced revenue in the county for more than a decade. Previous St. Louis County Councils and county executives have used reserves or other one-time revenue sources like Rams settlement funds to close the gaps. But the deficits have grown larger every year.
"We're going to have to make some tough decisions, hard decisions, going forward," 7th District Councilman Mark Harder, R-Ballwin, told his colleagues during a meeting last week to discuss revenue and spending. "And I sure don't want to make those decisions, especially when it comes to police and public safety and roads and things that government should be doing in this community."
But cuts to public safety may be unavoidable. The expense represents two-thirds of the county's general revenue spending, "and if you're going to move the needle on closing that gap, the math says that's where you'll have the largest pure dollar impact," said Paul Kreidler, the county's budget director.
County Executive Sam Page, who is not seeking reelection, will present his final budget in the fall. The council could try to put the tax on the ballot for another election. The county's fiscal year begins Jan. 1.
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