ST. LOUIS – A second challenge to the St. Louis tax code has emerged against the city. A lawsuit has challenged the constitutionality of the city’s payroll tax because the tax was not authorized by the Missouri state legislature.
The plaintiffs in the suit, General Marine Services and Thomas Joseph Neuner, argue that political subdivisions in the state cannot levy their own taxes without the permission or authorization of the legislature.
The St. Louis earnings tax, which has also come under fire in recent weeks, was authorized by the legislature.
The payroll tax is a 0.5 percent tax on employers, and brings in almost $33 million in funding for the city, which brings in about $500 million in general revenue.
