Earnings Tax

The St. Louis Board of Aldermen was expected to begin its winter break after Friday’s meeting, but members will be back in the chamber on Wednesday to pass utility assistance before the end of 2025.

The Board of Aldermen took early steps toward approving an April ballot measure that would ask voters to renew the city’s earnings tax.

Legislation from Alderwoman Cara Spencer would establish a mechanism for the city to reimburse 85% of Anders’ payroll, earnings and net profit taxes on new hires at the firm.

The city is seeking some $36,295 in earnings and payroll taxes that the developer failed to pay in 2022.

The City of St. Louis reopened the refund window for the 2020, 2021 and 2022 tax years to settle a lawsuit over the initial decision to not issue refunds of the 1% tax for remote work during the coronavirus pandemic.

The extended time to apply for refunds from the 2020, 2021 and 2022 tax years is part of a deal that settled a lawsuit over the city’s decision to not issue refunds for remote work during the pandemic.

The 12-member task force has been instructed to study how the city currently raises money, how sustainable those sources are and other potential revenue streams.

The establishment of the refund process settles a lawsuit brought by six nonresident employees of companies based in St. Louis. The Missouri Court of Appeals had recently ruled they were eligible for refunds.

Six workers who live outside St. Louis and performed work remotely do not have to pay the city's 1% earnings tax, an appeals court ruled.

St. Louis Mayor Tishaura Jones’ State of the City speech reflected the investment the city has made with American Rescue Plan Act dollars, but also a level of uncertainty about its financial future due to pending lawsuits over the 1% earnings tax.