JEFFERSON CITY - (KMOX) The Missouri House voted for final approval Monday to ban the City of St. Louis from charging an earnings tax on non-residents who work remotely for companies within the City. House Bill 589 was authored by St. Louis County Representative Jim Murphy. "I'm not trying to take away the earnings tax." He argued on the floor. "They're entitled to the earnings tax from everybody who lives in that city or works in that city." Rep. Murphy contended he was looking to protect his constituents who do neither.
The matter of the 1% earnings tax became an issue during the pandemic, when a great many employees of St. Louis companies stopped coming into the city to work. Instead, they were caught up in the wave of remote work and most felt entitled to apply for rebates. In years past, the City Collector of Revenue would pay back those who had the tax deducted, but did not actually come into the city do work. After the pandemic began, that number became so great, Collector Gregory F.X. Daly stopped paying the rebate. A group of them sued and won, but the judgement only counted for the 4 plaintiffs.
Rep. Murphy considers that to be taxation without representation, while those from St. Louis City said it would be a big hit to the municipal budget. Representative Steve Butz pointed out it's 30% is critical. "That is clearly the amount of money that funds - in great measure - the police department, the fire department and EMS." Representative Marlon Anderson noted, "We have individuals from all over the state who love come and fraternize, and enjoy the St. Louis Cardinals. Yet they are steadily bringing legislation to try to decimate the city."
The bill would also require the city to file a report with the state on those who it is charging the earnings tax. Since there are less than 2 weeks left in the legislative session, there are questions about whether the Senate will be able to get to the matter before they adjourn.
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