ST. LOUIS — A top St. Louis official conceded Monday the city hasn't studied what the impact would be if the government continues to lose a court case over remote workers who live outside the city but have been told to continue paying the city's 1% earnings tax.
The chairman of a state legislative committee grilled St. Louis city’s budget director about the potential impact on city finances if the workers get a refund on the tax, which is the No. 1 source of general revenue for the city.
Rep. Jim Murphy, R-south St. Louis County, said there have been multiple reports that it would cost the city $50 million per year. “Is that an accurate number?” Murphy asked. City Budget Director Paul Payne said it depends on the percentage of taxpayers who fall into that category and said he couldn’t answer that question.
Payne said the key to understanding the potential budget hole is getting clarity about what percentage of non-city residents pay the earnings tax and work remotely.
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