The city of St. Louis and COVID remote workers who sued the city after not being issued a refund of the earnings tax have reached a settlement.
According to the settlement agreement, the City will establish a claim process for remote workers who paid the earnings tax in the years 2020, 2021 and 2022 to request a refund of those taxes previously paid.
The city will also create a claim process for employers who paid a payroll tax for their remote workers.
Attorney Mark Milton represents the remote workers who filed the suit. He says he is happy the city decided to settle.
"After the appellate decision I made the comment that I hope the city does the right thing and I think that [City Collector] Gregory FX Daly and the mayor realized that their position was not tenable."
Milton says employers will also have a chance to file for a payroll tax refund.
"Our lawsuit did not concern the payroll tax however there was another lawsuit brought by AT&T concerning that issue." Milton adds "I think the city decided, [they were] just gonna put it all out there and make clear they were conceding their prior position."
The collector's statement says they have set aside $26 million from the upcoming budget to cover these refunds. However, the city has previously projected the cost be anywhere between $25 and $50 million annually between those years.
St. Louis Mayor Tishaura Jones has called a Monday press conference regarding the long term revenue of the city.