Senator Greg Razer Files Legislation Extending Earnings Tax Reauthorization Period
JEFFERSON CITY — State Sen. Greg Razer, D-Kansas City, has filed legislation that would extend the reauthorization period for an important source of funding for Kansas City, Missouri, and the City of St. Louis.
The earnings tax is a 1% tax on an individual’s earned income and is paid by all businesses and people who live or work in Kansas City, Missouri, or the City of St. Louis. Revenue generated from the earnings tax is used to pay for the general city services, like police and fire departments, street repair, maintenance projects and other city needs. In Kansas City alone, which is included in Sen. Razer’s district, the tax generates more than $292 million annually. The earnings tax is also subject to Kansas City and St. Louis City voter approval every five years. Senator Razer’s legislation, Senate Bill 486, seeks to extend that reauthorization period to 10 years.
Senator Razer sees this legislation as a way to provide a degree of financial certainty to Missouri’s two largest cities.
“The earnings taxes in Kansas City and the City of St. Louis have been in place for decades now, and time and time again, they have earned a high degree of support from taxpayers,” said Sen. Razer. “By simply extending the length of time it is authorized, I believe we can provide our city governments with a more predictable revenue source to fund the vital city services so many depend on.”
For more information on this legislation, please contact Senator Razer’s office at 573-751-6607.