Historical March 1988 report or notice. Original dates, prices and contacts describe the source period; current availability has not been established.
On March 8, 1988, voters of the City of St. Louis will be asked to approve a tax reform package.
The tax reform package was devised by a Commission I appointed headed by former Mayor John Poelker and was comprised of university professors, business leaders, and elected officials.
The tax reform package will be listed on the ballot as propositions F, A, I and R. (FAIR).
A key recommendation of the Commission was replacing the Business Head tax and the Merchants and Manufacturers (M&M) tax with a .5% payroll tax.
As a result of the inequities of the two taxes, smaller businesses have been paying a larger share of taxes relative to larger corporations.
The Business Head tax placed a comparatively greater burden on employers of lesser skilled workers.
The M&M tax is paid by the city businesses that produce or sell goods.
The tax is not applicable to the service sector, such as banks and law firms. Instituting the payroll tax will shift the tax burden from small and mid-size businesses to larger businesses.
If the tax reform package is approved, most businesses will see a reduction in their total tax bill. Included in the tax package is a measure for an annual licensing/inspection fee based on the number of full-time equivalent employees.
This fee would eliminate many “nuisance” fees such as those paid for annual inspections and permits.
The .5% payroll tax combined with the annual licensing/inspection fee would ensure a more equitable distribution of the business tax burden.
The voters will also be asked to approve the continuation of the 3/8 cent sales tax.
The 3/8 cent sales tax must be resubmitted to the voters for approval before its 1990 expiration date. Approval by the voters will allow for continuous collection of the tax.
The last tax proposal, 1/2 cent sales tax, will be dedicated to repairing the City’s deteriorating infrastructure.
Last year, the state legislature granted the City authority to collect an additional 1/2 cent sales tax. Up to 1/3 of the revenue collected under the tax will be utilized for capital improvement projects for the St. Louis public school system.
The capital improvement projects proposed by the school system would be subject to annual review and approval by the Board of Aldermen.
It is the goal of the City of St. Louis to adopt a tax structure that will provide for an equitable distribution of the business tax burden as well as provide stable sales tax revenue: The sales taxes provide an alternative to seeking property tax increases to meet our City revenue needs.
The four tax measures appearing on the March 8, 1988 ballot, if approved, will provide the City of St. Louis with the financial security needed to meet the challenges of the future.
Originally published in The Times of Skinker-DeBaliviere, March 1988.
Read this article in the original newspaper issue.
Original source: SD_Times1988_03.pdf, printed page(s) 6; PDF page(s) 6.
