SB 993 - Current law authorizes the cities of St. Louis and Kansas City to levy an earnings tax on the income of residents and nonresidents performing work in the city, with a rate not to exceed 1%. For all tax years beginning on or after January 1, 2025, this act provides that the rate of tax imposed in St. Louis City may be reduced over a period of years. Each reduction shall be by 0.1% and shall only occur if the amount of annual revenue received, as defined in the act, in the previous fiscal year is greater than the amount of annual revenue received in the fiscal year immediately previous to such fiscal year by at least 3%. In any such year, an amount equal to 50% of the growth in annual revenue received for such year shall be deposited into the "Earnings Tax Reserve Fund", which is required to be created by the act. Revenues deposited into such fund shall be used to offset the reduction in revenues due to reductions in the rate of tax made pursuant to the act. If the balance in the fund exceeds the amount necessary to offset reductions in revenue due to reductions in the rate of tax, the governing body of the City may authorize refunds to taxpayers from such excess balance. This act is identical to HB 2275 (2024).
JOSH NORBERG