HCSHB589--EARNINGSTAX
SPONSOR: Murphy
COMMITTEEACTION:Voted"DoPasswithHCS"bytheSpecial
CommitteeonTaxReformbyavoteof8to4.
ThefollowingisasummaryoftheHouseCommitteeSubstituteforHB
589.
ThisbillspecifiesthattheCityofSt.Louisshallnotcontinue
toimposeanearningstaxwithoutsubmittingaquarterlyreport
detailingreceiptsfromtheearningstax,asdescribedinthebill.
Suchreportshallbepostedonthemainwebpageofthewebsiteof
thecityandtheCollectorofRevenue,andshallalsobesubmitted
totheStateAuditor,theSecretaryoftheSenate,theChairofthe
SenateAppropriations Committee,theClerkoftheHouseof
Representatives, andtheChairoftheHouseofRepresentatives
BudgetCommittee.
ForalltaxreturnsfiledonorafterJanuary1,2024,thisbill
alsodefinesthattheterm"workdoneorservicesperformedor
renderedinthecity"shallnotincludeanyworkorservices
performedorrenderedthroughtelecommutingorotherwiseperformed
orrenderedremotelyunlessthelocationwheresuchremoteworkor
servicesareperformedislocatedinthecity.Thebillcreatesa
causeofactionforataxpayerwhoisdeniedarefundfortaxes
paidforworkorservicesnotperformedorrenderedinthecity.
NolaterthanSeptember30,2023,thecityshallestablisha
processfortaxpayerstorequestarefundforanyearningstax
leviedonworkorservicesperformedorrenderedthrough
telecommutingorotherwiseperformedorrenderedremotely,unless
thelocationwheresuchremoteworkorserviceswereperformedis
locatedinthecity,whichshallincludeasamplereimbursement
formthatisaccessibletotaxpayersonthecity'swebsite.
ThisbillissimilartoHCSHB688(2021).
Thefollowingisasummaryofthepublictestimonyfromthe
committeehearing. Thetestimonywasbasedontheintroduced
versionofthebill.
PROPONENTS: SupporterssaythatalthoughtheCityofStLouis
imposesacityearningstaxonthosewhoworkremotely,such
taxpayersdonotnecessarilyreceivethebenefitsandservicesthat
individualsresidinginStLouisCityenjoy(suchaspoliceand
firefighting).SupportersfurthersaythatmanyMissouricourts
havealreadyruledinfavorofthoseremoteworkerswhohavesued
forarefundofthecityearningstaxwithholding. TestifyinginpersonforthebillwereRepresentative Murphy;and
theAssociatedIndustriesofMissouri.
OPPONENTS: Thosewhoopposethebillsaythatifthecityearnings
taxisreducedoreliminated,thiswillseverelyhampertheability
ofStLouisCitytoprovideessentialservicestothepublic(such
aspoliceandfirefighting).
TestifyinginpersonagainstthebillwereMarcStoff,Officeof
CollectorofRevenue-GregoryF.X.Daly;DemetrisAlfred"Al",
MissouriStateCouncilFirefighters;andtheCityofKansasCity/
GreaterKansasCityChamberofCommerce.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.