JEFFERSON CITY, Mo. – State Representative Jim Murphy, Chairman of the Special Interim Committee on the Earnings Tax, is announcing the first of three public hearings with the aim of evaluating the policies of municipalities that utilize an earnings tax.
The first hearing will be held at the Missouri State Capitol on Tuesday, September 12 at 9 a.m. in House Hearing Room 7. The purpose of this first meeting will be to take an in-depth look on policies of taxation of remote workers, in particular those in City of St. Louis compared to Kansas City policies and other national locales. The earnings tax is one percent tax on salaries, wages, commissions, tips and other compensation paid to a person that lives or works in a designated city, such as St. Louis or Kansas City.
“The status quo carries significant implications,” Murphy, R-St. Louis, said. “Just because this tax is a major revenue source for the City of St. Louis doesn’t preclude us from exploring alternatives that might be less regressive and more conducive to the city, region, and state’s growth.”
The committee’s mission will encompass:
- Broad Stakeholder Engagement:Gathering insights and data from a wide array of contributors, such as taxpayers, city administrators, industry champions, and other key stakeholders, will be pivotal. Their collective perspectives will provide a comprehensive understanding of the tax’s effects on the city, surrounding region, and the state as a whole.
- Non-Resident Tax Contribution Analysis:A thorough assessment to determine the percentage of the earnings tax revenue collected by the City of St. Louis that is contributed by non-residents, thus understanding the broader reach of the tax beyond city boundaries.
- Remote Work Reimbursement Review:An in-depth look into how St. Louis has adapted its reimbursement policies concerning remote workers, benchmarked against similar policies in Kansas City and other jurisdictions across the nation with comparable local income taxes.
- Exploring Revenue Replacement Options:Perhaps the most critical aspect of the committee’s mandate will be the identification and assessment of potential alternative revenue models. These models should ideally be less regressive, more supportive of regional and statewide economic growth, and simultaneously ensure the City of St. Louis retains adequate funding for its essential services like police, fire, and public welfare.
“We anticipate a collaborative dialogue,” Murphy stated. “However, it’s essential for the city to come prepared with data and constructive suggestions, rather than mere opposition without solutions.”
State Representative Jim Murphy, a Republican, represents parts of St. Louis County (District 94) in the Missouri House of Representatives. He was elected to his first two-year term in November 2018. For more information, please contact Rep. Murphy’s office at 573-751-3719 or via email at Jim.Murphy@House.Mo.Gov.