JEFFERSON CITY 鈥 The Missouri House advanced legislation Monday requiring 狐狸视频 officials to create a new process for people to request a refund of the city鈥檚 earnings tax for any work they perform remotely.
As part of a multiyear effort to address the collection of earnings taxes from people who worked outside of the city during the pandemic, the Republican-led House voted 106-47 to send the measure to the Senate with two weeks left to go in the legislative session.
The proposal could have a devastating impact on the city鈥檚 budget, which relies heavily on the 1% tax it charges to people who work within the city borders.
According to a nonpartisan fiscal analysis of the legislation, the proposal would cost the city an estimated $66 million in revenue, resulting in less money for police, fire and other city services.
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鈥淎 loss of revenue of this magnitude would be a devastating blow to the City鈥檚 credit and fiscal condition, and would seriously impair the city鈥檚 ability to provide basic city services,鈥 the analysis notes.
The fight over taxing remote workers has been in the spotlight over the past three years as people have stayed away from offices and other places of business during the coronavirus pandemic.
The 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.
In all, the tax brought in $206 million in the most recent fiscal year.
鈥淲e鈥檙e debating a bill that would defund the police which would make it unsafe,鈥 said Rep. LaDonna Appelbaum, a 狐狸视频 County Democrat.
Rep. Del Taylor, D-狐狸视频, also said it would hurt the city, which is often criticized by Republicans for crime, street repair and homelessness.
鈥淭his is critical to the finances of our city,鈥 said Taylor
鈥淚t is foundational to basic city services,鈥 Rep. Steve Butz, D-狐狸视频, said during an earlier committee hearing on the measure.
The sponsor of the bill, Rep. Jim Murphy, a south 狐狸视频 County Republican, said the city should not be able to collect the money.
鈥淚t鈥檚 just outrageous that they charge them a tax,鈥 Murphy said. 鈥淚鈥檓 representing the people in my district. It鈥檚 taxation without representation.鈥
Rep. Tony Lovasco, R-O鈥橣allon, also backed the proposal.
鈥淩emote work is remote work for a reason. You are not in the jurisdiction,鈥 Lovasco said. 鈥淚t鈥檚 a small fix. It鈥檚 not going to cripple the city.鈥
Rep. LaKeySha Bosley, D-狐狸视频, said it was worrisome that neither the sponsor or supporters were from the city.
鈥淚f you want to cut taxes in your area, you do that in 狐狸视频 County. Let us make those decisions,鈥 Bosley said.
The legislation comes as the city is appealing a case that found in favor of six people who sued over being charged the tax while they were working outside of the city limits.
Opponents of the measure say the Legislature should wait for a final judgment in the legal challenge before stepping into the fight.
鈥淭his issue is in the courts. I encourage us to not intervene,鈥 Butz said.
In addition to streamlining the appeals process, the legislation requires the city to compile a quarterly report detailing receipts it collects from the tax. If the city does not comply, it could lose its ability to impose the tax, the legislation notes.
The legislation is
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