City Earnings Tax.... (St. Louis: sales, condo, houses)

[Bobster]

I'm curious....what do you folks think about the City of St. Louis' 1% earnings tax? Does it bother you to have to file an additional return and to pay that tax?

I would think that it probably ends up costing the city more in the long haul than it makes.

One, it truly does become an expensive tax for higher income people who you would think would be a group that the city would like to have living in it's borders.

And two, it's a hassle for the employers who might consider locating in the city because they now have to file an additional 4 quarterly reports each year.

I've heard the argument that the city is simply too dependent upon the money that it raises to do away with it and I'm sure that right now that this is true. But, if they phased it out over say a 15 or 20 year period, could the city not find other revenue sources such as increased property and sales tax revenue generated by the additional people who would move into the city if the tax were being done away with?

What do you guys think?

[TGS]

Most people don't have to file an extra return. As long as the tax is taken out of their paychecks by their employer, then they don't have to file a return.

[Bobster]

I didn't know that. I know that when I had my company in the city that it was a pain in the axx and the city department of revenue was extremely nasty to deal with. Thanks for the comment!

[WestCoDude]

......and the city wonders why it can't attract top-quality businesses, business-owners, and city workers (police, firemen, etc.). Sometimes I get a little misty-eyed for how poorly things are going in the city....and then I look at dumbass laws like this and stop feeling so sorry for it. You can't have taxes like this and expect to prosper.

[Brickmama]

Its not that big of a burden. Its only a dollar for every hundred you make. Propety taxes are much lower in the city that other places in the region and offsets the expense.

[MoNative34]

St. Louis City property taxes are 7.27% Surrounding areas vary from 5.5 to 7%.

[aragx6]

Many large cities have this tax.

[photoglyph]

Brickmama;2892038 "It's not that big of a burden. Its only a dollar for every hundred you make. Property taxes are much lower in the city that other places in the region and offsets the expense."


Spot-on! We do pay less in property tax than most of the rest of the state -they don't do 'drive by assessments in the city...'

A great mistake was made a few years ago involving successful efforts by a sham organization known as 'Show Me Values' that resulted in stock options not being counted as income -big mistake...

[Bobster]

Hmmmm, I'm not so sure of the idea that property taxes are lower in the city. I know that the county is upping what they charge, but I've always ball parked taxes in the city at about 1.25% of the value of the house whereas I would ballpark houses in the county at about 1%.....I'll have to check it out on the MLS and see if my assumptions are still in line with reality.

Thanks for the comments....would love to see some more!

[Brickmama]

Lets look at it this way. I have a condo for about 180k and pay 1200 a year. I know of somone who lives in a 1500 sf house in Soulard with a large yard for city comparisons and only pay 1800. You cant beat it for that location. If I bought a house it some of the attractive near burbs, Metro East, or west county for that price then I would be looking at 3-5k per year. For me personally it is a much better deal.