St. Louis bill would make dividends, stock options subject to earnings tax

As state legislators work on a bill that would eliminate the earnings tax in St. Louis, a local lawmaker in the city is proposing a municipal measure that would make gains from dividends or stock options subject to that tax.

The local bill, which would repeal an ordinance exempting certain types of income from the city’s 1 percent earnings tax, is likely to be introduced before the St. Louis Board of Aldermen this week.

Sponsored by Alderwoman Sharon Tyus, the bill would make several types of previously exempt income subject to the city’s earnings tax. That includes income:

  • Received by a person related to the grant, vesting or exercise of stock options
  • Received from dividends
  • Received from performance shares or performance-based stock related incentive plans

The earnings tax accounts for roughly one-third of St. Louis’ general revenue — or a projected $162 million in Fiscal 2016. Renewal of the tax will be up for vote in April, but Republican legislators in Jefferson City are seeking to do away with the tax through a new state law.

Read more: St. Louis Business Journal

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