Hannibal voters will decide Tuesday whether to permanently close a sales tax loophole. 

Supporters say if Propositions 1 and 2 are not approved, some local businesses could be at a competitive disadvantage. The loophole came about when the Missouri Supreme Court ruled that the out-of-state purchases did not require sales tax payment. The Missouri Legislature temporarily closed the loophole, but voter approval is required to make the closure permanent.

Prop 1 involves a use tax that only takes effect if no sales taxes are charged on out-of-state purchases of $2,000 or more.

Prop 2 closes the sales tax loophole. Supporters stress the use tax rate of 2.25 percent is identical to the sales tax rate-- consumers will pay either the use tax or the sales tax but not both.

More From KHMO-AM 1070, News-Talk-Sports