EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 546
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR LEWIS.
1978S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 92.105, 92.111, and 92.115, RSMo, and to enact in lieu thereof three new
sections relating to earnings tax.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 92.105, 92.111, and 92.115, RSMo, are 1
repealed and three new sections enacted in lieu thereof, to be 2
known as sections 92.105, 92.111, and 92.115 , to read as 3
follows:4
92.105. It is the intent of sections 92.105 to 92.125 1
that starting in 2011 voters in any city imposing an 2
earnings tax will decide in local elections to continue the 3
earnings tax. If the majority of local voters vote to 4
continue the earnings tax, it will continue for five years , 5
or in any city with more than four hundred thousand 6
inhabitants and located in more than one county, for ten 7
years, and then will be voted on again. If a majority of 8
voters in any city having an earnings tax vote against 9
continuing the earnings tax, it will be phased out pursuant 10
to section 92.125 in such city over a period of ten years. 11
Further, sections 92.105 to 92.125 prohibit any Missouri 12
city or town that does not, as of November 2, 2010, impose 13
an earnings tax, from imposing such a tax on residents and 14
businesses. 15
92.111. 1. After December 31, 2011, no city, 1
including any constitutional charter city, shall impose or 2 SB 546 2
levy an earnings tax, except a constitution al charter city 3
that imposed or levied an earnings tax on November 2, 2010, 4
may continue to impose the earnings tax if it submits to the 5
voters of such city pursuant to section 92.115 the question 6
whether to continue such earnings tax for a period of f ive 7
years, or if such city with more than four hundred thousand 8
inhabitants and located in more than one county, for a 9
period of ten years, and a majority of such qualified voters 10
voting thereon approve such question, however, if no such 11
election is held, or if in any election held to continue to 12
impose or levy the earnings tax a majority of such qualified 13
voters voting thereon fail to approve the continuation of 14
the earnings tax, such city shall no longer be authorized to 15
impose or levy such earni ngs tax except to reduce such tax 16
in the manner provided by section 92.125. 17
2. As used in sections 92.111 to 92.200, unless the 18
context clearly requires otherwise, the term "earnings tax" 19
means a tax on the: 20
(1) Salaries, wages, commissions and other 21
compensation earned by its residents; 22
(2) Salaries, wages, commissions and other 23
compensation earned by nonresidents of the city for work 24
done or services performed or rendered in the city; 25
(3) Net profits of associations, business es or other 26
activities conducted by residents; 27
(4) Net profits of associations, businesses or other 28
activities conducted in the city by nonresidents; 29
(5) Net profits earned by all corporations as the 30
result of work done or services performed or rendered and 31
business or other activities. 32
92.115. 1. Any constitutional charter city which as 1
of November 2, 2010, imposed or levied an earnings tax may 2 SB 546 3
continue to impose or levy an earnings tax, pursuant to 3
sections 92.111 to 92.200, if it submits to the qualified 4
voters of such city on the next general municipal election 5
date immediately following November 2, 2010, and once every 6
five years thereafter, or if such city with more than four 7
hundred thousand inhabitants and located in more than one 8
county, once every ten years thereafter, the question 9
whether to continue to impose and levy the earnings tax 10
authorized pursuant to sections 92.111 to 92.200, and if a 11
majority of qualified voters voting approve the continuanc e 12
of the earnings tax at such election. 13
2. (1) The question submitted to the qualified voters 14
in any such city, except for any city with more than four 15
hundred thousand inhabitants and located in more than one 16
county, shall contain the earnings tax percentage imposed 17
and the name of the city submitting the question and shall 18
otherwise contain exactly the following language: 19
(2) The question submitted to the qualified voters in 25
any city with more than four hundred thousand inhabitants 26
and located in more than one county shall contain the 27
earnings tax percentage imposed and the name of the city 28
submitting the question and shall otherwise cont ain exactly 29
the following language: 30
20
21
22
23
Shall the earnings tax of ______ %, imposed by the
City of ______, be continued for a period of five
(5) years commencing January [1] 1st immediately
following the date of this election?
24 □ Yes □ No
31
32
Shall the earnings tax of ______ %, imposed by the
City of ______, be continued for a period of ten
SB 546 4
3. If the question whether to continue to impose and 36
levy the earnings tax fails to be approved by the majority 37
of qualified voters voting thereon, the earnings tax levied 38
and imposed on November 2, 2010, shall be reduced pursuant 39
to section 92.125 commencing January first of the calendar 40
year following the date of the election held under this 41
section or January first of the calendar year following the 42
calendar year in which such election was authorize d under 43
this section but not held by such city. 44
4. No city which has begun reductions of its earnings 45
tax pursuant to section 92.125 may, by ordinance or any 46
other means, with or without voter approval, stop or suspend 47
such reduction. 48
33
34
(10) years commencing January 1st immediately
following the date of this election ?
35 □ Yes □ No