St. Louis and Kansas City Learning Fate of Earnings Tax

7 years 8 months 1 week ago Tuesday, April 05 2011 Apr 5, 2011 Tuesday, April 05, 2011 6:48:30 AM CDT April 05, 2011 in News
Source: Associated Press
By: Posted by: Allie Spillyards

ST. LOUIS (AP) - Voters in St. Louis and Kansas City, Mo., are weighing the benefits of huge tax savings against the potential detriment that losing the revenue could have on their cities.

Polls open Tuesday in Missouri's two largest cities to allow local voters to decide whether to retain each city's 1 percent earnings tax.

The tax creates about $140 million annually for St. Louis, or one-third of the city's revenue. Kansas City's tax creates about $200 million, or about two-fifths of the city's budget.

Opponents argue that the tax keeps businesses and residents from moving to the cities. They say the cities should find other ways to fund services.

Under a proposal approved by Missouri voters in November, both cities must hold renewal votes on their earnings taxes every five years.

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