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Is the earnings tax applied equally to businesses, commuters and residents in Kansas City and St. Louis?

April 26, 2017applied businesses commuters Earnings equally kansas city residents st. louis tax

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Is the earnings tax applied equally to businesses, commuters and residents in Kansas City and St. Louis?

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No. Each city offers tax breaks to selected companies, including reductions or elimination of earnings taxes. Typically, such reductions are given only to large businesses. For example, St. Louis has offered a reduction in earnings taxes to Peabody Energy if it will agree to remain in the city. In Kansas City, the City Council unanimously endorsed a plan to let the National Association of Insurance Commissioners keep 50 percent of the earnings taxes paid by its employees – if the organization stays in Kansas City. Each city also creates tax increment finance (TIF) districts, where a portion of the earnings taxes is returned to developers. According to its 2011 budget, St. Louis has 59 such TIF districts (page A-9). Kansas City has 65, according to its 2010-2011 budget (pages 130-131).