St. Louis Tax Refund Settlement: Remote Workers Eligible for Earnings Tax Refunds – $25 Million Annually

Remote workers in St. Louis who paid city earnings taxes during the pandemic can now seek refunds due to a settlement after a legal battle led by attorneys Bevis Schock and Mark Milton.

St. Louis Tax Refund Settlement: Remote Workers Eligible for Earnings Tax Refunds

Taxpayers who worked remotely during the pandemic and paid earnings taxes to the City of St. Louis are now eligible for refunds, following a settlement announced on Friday. The agreement concluded a three-year legal battle led by attorneys Bevis Schock and Mark Milton, who represented six plaintiffs initially denied refunds by Collector of Revenue Gregory Daly. Notably, Schock and Milton did not charge fees for their services, according to the report of The Center Square.

During a press conference, Bevis Schock emphasized the significance of the settlement, stating, “The city and the collector have decided now to do the right thing.” This development follows an appeals court ruling that affirmed the city cannot impose a 1% earnings tax on non-residents who performed work outside city limits during the pandemic.

Gregory Daly, acknowledging the outcome, stated, “My office, along with the city, chose to fight this lawsuit because we believed our actions were consistent with the terms of the statute and the right thing to do on behalf of the people of the City of St. Louis.” Despite defending their position in court and the settlement now allows for refunds to taxpayers who filed claims for remote work between 2020 and 2022.

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(photo STLPR)

St. Louis Tax Refund Settlement: Filing Window and Legislative Impact Detailed

Eligible taxpayers must file refund claims within a 90-day window starting July 1st and ending September 30th. The city and Collector Daly will also review previously filed refund requests. Estimates suggest potential refunds could total around $25 million annually, a figure acknowledged by city officials amid the financial implications of the settlement.

Attorney Mark Milton highlighted the strain the earnings tax placed on employers and employees alike during payroll processes, underscoring the broader implications of the legal resolution. Both Schock and Milton commended the professionalism of the city’s legal team throughout the process, emphasizing fair procedure despite legal disputes.

The settlement’s broader impact prompted legislative action, with special committee hearings and proposed legislation aimed at restricting municipal earnings tax collections in Missouri cities like St. Louis and Kansas City. Despite efforts, the bill ultimately did not advance beyond the legislative session in May.

In conclusion, the settlement represents a significant victory for taxpayers, legal clarity, and municipal governance in St. Louis. Mayor Tishaura Jones and Collector Daly are expected to address further details in an upcoming press conference marking a pivotal moment in the city’s tax policy and legal precedent.

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