JEFFERSON CITY 鈥 Residents of St. Charles and Jefferson counties who commute to jobs in 狐狸视频 could be exempted from the city鈥檚 1% earnings tax under legislation filed Thursday in the Missouri House.
Rep. Phil Christofanelli, R-St. Peters, introduced the measure amid a push by House Speaker Dean Plocher and other GOP allies to bring the issue up for debate when the Legislature convenes for its annual session beginning Wednesday.
The city鈥檚 earnings tax has long been a target for Republican lawmakers. The tax is levied on individuals who live and/or work in the city and comprises a significant portion of the city鈥檚 budget.
鈥淚 love the city of 狐狸视频 and I want people to work there. But, when you tax something you get less of it,鈥 Christofanelli said Friday. 鈥淚 don鈥檛 think we should create those types of disincentives.鈥
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The proposed change says the tax would be exempted for residents of counties with populations over 200,000 that are adjacent to a county with a population over 900,000 residents. That appears to affect only St. Charles and Jefferson counties, which border 狐狸视频 County.
The latest proposed change comes as Christofanelli is running for the state Senate in the 23rd district where the current incumbent, Bill Eigel, is running for governor. Christofanelli faces Rep. Adam Schnelting of St. Charles and former St. Charles Elections Director Rich Chrismer of St. Peters in the August 2024 Republican primary.
In October, Christofanelli received a $25,000 check from retired 狐狸视频 financier Rex Sinquefield, who has led the charge in past years to kill the earnings tax.
While there have been previous unsuccessful attempts to eliminate the decades-old tax, GOP lawmakers have in recent years sought to clarify the law when it comes to people who work remotely outside the city limits.
That, said Christofanelli, is among the reasons he wants to address the issue in the coming year.
鈥淢y constituents don鈥檛 get a say in whether they have to pay the earnings tax,鈥 he said. 鈥淚f we鈥檙e going to have taxation there ought to be representation.鈥
In addition, he said he was dissatisfied with the city鈥檚 procedures in collecting tax during pandemic when people were working at home.
鈥淲ithout access to clear information I really can鈥檛 be supportive of the tax,鈥 Christofanelli said.
Plocher, who is running for lieutenant governor, last year backed legislation that created a new process for people to request a refund of the city鈥檚 earnings tax for any work they performed remotely during the coronavirus pandemic.
The measure was approved in the House on a partisan 106-47 vote, but the legislation died in the Senate.
According to a nonpartisan fiscal analysis, the proposal would have cost the city an estimated $66 million in revenue, resulting in less money for police, fire and other city services.
Despite annual attacks on the tax by Republicans who control state government, the earnings tax has wide support in the city. In a 2011 referendum, 88% of voters voted to keep the tax in place. In 2016, that number was 72%. In 2021, the tax was supported by 79% of voters.
In all, the tax brought in $206 million in the most recent fiscal year.
A 2022 fiscal analysis shows that 37% of the city鈥檚 workers live outside of the city. Another 5.8% work in the city but reside in Illinois.
Christofanelli said he expects other lawmakers to file legislation aimed at the earnings tax in the coming weeks.
鈥淭his is a starting point. It鈥檚 a long road in the legislative process,鈥 he said.
Lawmakers are scheduled to meet until May 17.
The legislation is Hous