SB 437 - Currently, the revenues from a 1% sales tax in St. Louis County are distributed to unincorporated areas of the county as well as municipalities based on a formula. Group A cities retain the revenues generated within the city except for a portion which is shared with Group B cities. Group B cities, which include unincorporated areas of the county, pool their revenues and distributed them generally based on population. Distributions to both Group A and Group B cities are subject to an adjustment to account for annexations of unincorporated portions of the county. On sales of motor vehicles, 75% of the sales tax revenues are distributed in accordance with the above formula and 25% of the revenues are distributed based on number of transactions occurring within the city or unincorporated area of the county.
This act phases out the formula system over two years beginning January 1, 2016. Starting January 1, 2018, all revenues from the 1% sales tax will be pooled and distributed based solely on population.
Currently, all municipalities in St. Louis County are authorized to impose an additional 1/4% sales tax. Municipalities imposing the additional tax retain the revenues generated within the municipality, except for a portion which is distributed to Group B cities in a similar manner as the 1% countywide sales tax. Beginning January 1, 2016, this act eliminates the distribution formula so that cities imposing the additional tax retain all the revenues generated within the municipality. The act also increases the rate of the tax that may be imposed to 1/2%.
This act contains a nonseverablity clause.
This act is substantially similar to HB 913 (2015), HB 2111 (2014), and HB 1463 (2012).