Earnings Tax

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.

A lawsuit that seeks to reimburse remote workers who paid the city’s earnings tax awaits a ruling from the Missouri Court of Appeals.

Other recommendations by the committee included an exemption of the earnings tax for low-income workers as well as reimbursements for remote workers.

St. Louis Budget Director Paul Payne faced a barrage of questions from Missouri House members over the city’s earnings tax on Monday.