ST. LOUIS (KMOX) — A just-released Missouri State Audit warns the city of St. Louis has a "rampant" number of special sales tax districts--138.
Some of these districts overlap with others, forcing consumers to pay sales tax approaching twelve cents on the dollar. The districts are approved by the city, but often run by a developer or property owner.
"What makes me the maddest about this is that this is taxation without representation," Missouri State Auditor Nicole Galloway stated. "That a private property owner can create a special taxing district and start charging sales tax."
Sales tax on a Starbucks coffee on Grand Ave near SLU: 13.2% https://t.co/jJZtmZJ11j
— Charlie Brennan (@charliekmox)
November 22, 2019 The report finds 96 percent of the Community Improvement Districts are controlled by the developer or property owner. Galloway says City Hall is doing only "the bare minimum" to monitor its special taxing districts, to make sure the money is being properly spent.
"Citizens are paying very high sales tax and the city cannot determine that there is a public benefit at all because they're not doing their due diligence to begin with."
Nicole Galloway says it’s wrong consumers are paying the highest sales tax in the state in parts of St Louis (almost 12 cents a dollar) because of special tax districts. pic.twitter.com/KSM1p8pVxp
— Kevin Killeen (@KMOXKilleen)
November 21, 2019 She also accuses the city of St. Louis of failing to require financial reports from these special taxing districts to show how much money these property owners are collecting and how they're using it.
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