Since 1959, St. Louis residents have paid a 1% earnings tax on income to help fund city services such as police, fire, streets and trash collection. Next week, voters will decide whether to continue the tax under Proposition B, a measure that appears on the ballot every five years. If rejected, the tax would be phased out over 10 years.
Each year it has appeared on the ballot, voters have approved it. But Cheryl Walker will not be among them this year, but not because she has gripes with the city.
“It’s because of the current climate in this country. I believe we all need to keep as much of our funds in our pockets as possible,” Walker said. “At this time, I’m against it because I need to look inward.”
Mayor Cara Spencer is urging voters to take a different view, encouraging support for Proposition B while acknowledging the city’s heavy reliance on the earnings tax and the need to identify additional revenue sources.
“We do have some work to do to make sure that we have a more robust stream of revenue going forward, and that’s something that you’ll be hearing from us as we move forward through the next few years.”
Residents and non-residents who work in the city pay the earnings tax, which applies to wages, salaries, commissions and other compensation. Nearly 80% of voters approved the tax in 2021.
The tax generates more than $200 million annually. Alderman Michael Browning said it is the city’s largest single source of revenue and accounts for more than one-third of the budget.
“If you look at your tax bill every year, you’ll notice it makes up the largest chunk for the city, but it is not the biggest tax on your bill,” Browning said.
According to the city’s 2026 second-quarter general revenue report, the current fiscal budget is tracking above estimates, driven in large part by earnings tax collections. Refunds have come in below projections, and overall revenue growth remains positive, the report states.
Former St. Louis Fire Chief Sherman George said the tax is essential to maintaining city services.
“I think we need it to meet our budget. We need it to make sure we can pay our bills. I’m still a city resident so, yeah, we need to cover city services,” George said.
The tax has also drawn scrutiny from state lawmakers who have proposed legislation that would limit who must pay it or reduce the revenue it generates.
Andy Taylor, executive chairman of Enterprise Holdings, donated $100,000 to a committee supporting the tax. Last month, Spencer held a campaign kickoff rally, joined by elected officials, police and fire representatives and labor leaders urging a “yes” vote.
Former Mayor Tishaura o. Jones created a task force in 2024 to study the city’s revenue structure, but it did not release a promised report.
Some voters remain opposed. Ayodeji Ojo, a Dogtown resident, said the tax adds to an already heavy burden.
“As someone who works for his living, I feel that being taxed on the money we’re making is a bit overbearing, especially when we’re working very hard for a living and it doesn’t make sense especially when we’re being taxed in other ways.”
Others say the tax is necessary. Local radio broadcaster Robin Boyce said she supports Proposition B.
“It’s one of the many taxes we have that takes a portion of our income taxes that adds a safety net to the city’s budget. It’s needed. St. Louis has benefitted from this tax as far as taking care of everyday needs in the city.”
Boyce said her experience working in the comptroller’s office shaped her view.
“After working in the comptroller’s office, being a steward of the citizens of St. Louis’ taxes, that’s one tax I can say we definitely need. When it flows through, it really saves our butts — for real!”
Sylvester Brown Jr. is the Deaconess Foundation Community Advocacy Fellow.
I do understand the need for the City Earnings Tax. However, the problem is how the tax is distributed. As a tax payer, I have no idea where this specified tax is going. The public services the city claims the Earnings Tax is allocated to are the exact services that have been cut or defunded. So we need more transparency from the city. Spencer campaigned on ” Pot holes in streets, etc…..” What is the City doing with our City Earnings? We still have pot holes. #spencerdoyourjob
30% of the City’s operating budget
Proposition E! If you make $30,000 that’s only $300. A small amount for the services we received. Remember voting for this in the first place is tge scheme of a rich millionaire Rex S.
I was recently in downtown Saint Louis after not working in the heart of DT since 2007 and, most recently, 2020. What I saw was appalling. Derelict buildings are everywhere. I ask whoever still works or lives there, please tell me what’s going on. A once vibrant community now dead. This is really sad.
Im a hard NO on the earnings tax. As a resident in Dog town, and the City as a whole for the last 25yrs, Ive seen some
horrible decisions made and the only constant has been a decline of our City. We are taxed every which way possible in St louis/Missouri/USA and our wages/salaries have not kept up with COL, and to make ends meet we, or I, continue to work more hours each year , all while having less to work with. I vote for more tax transparency, and a complete overhaul of our City employees and see where the leaks are coming from and how we can tighten up and improve managing costs, while improving efficiency. Government is notorious for wasting money , so let’s vote NO on the 1% earnings tax, and run STL like a private business and Make St Louis Great Again!
Where is the PLANdemic Covid-19 money?
Who is managing the Rams refund money?
What is happening with the AT&T bldg downtown, along with all
the other empty buildings?
What is happening with Lambert airport and the disastrous redesign?
How about charging for a membership card to be able to abide in cannabis activities for all the THC users
who walk around and make the air reek of a freshly hit skunk? STL reeks like one big pot farm, and everyone seems to be high now.
Can we double or triple fines for the people involved in blocking large city intersections while doing donuts in their vehicles, while often videotaping themselves?
Im aware my complaints and concerns, along with changes to be made WILL enflame many who read
this comment but Im all for major changes because nothing else seems to stick or work for measurable worthwhile gains in our great city.