Bill > SB546

This bill modifies Missouri's earnings tax provisions, specifically focusing on cities that currently impose such taxes. The bill requires cities with an earnings tax to hold periodic voter referendums to continue the tax, with most cities voting every five years and any city with over 400,000 inhabitants located in multiple counties voting every ten years. Under the law, cities that did not have an earnings tax as of November 2, 2010, are prohibited from implementing one. The bill defines "earnings tax" broadly, covering taxes on salaries, wages, commissions, and net profits for both residents and non-residents working in the city. When cities submit the tax continuation question to voters, the ballot must specify the current tax percentage and ask whether it should be continued for the designated period. If voters do not approve the tax continuation, the earnings tax will be phased out over ten years, and once a reduction process begins, the city cannot stop or suspend the reduction. This legislation aims to provide local control over earnings taxes while preventing the expansion of such taxes to new cities.

Labor and Employment

https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=1755421