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Lawsuit challenges St. Louis payroll tax paid by employers

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ST. LOUIS (AP) – A St. Louis business is suing to halt the city’s payroll tax paid by employers, arguing that it’s unconstitutional.

The St. Louis Post-Dispatch reports that General Marine Services and attorney and financial adviser Thomas Joseph Neuner claim in Monday’s lawsuit that the half-percent tax was never authorized by the Missouri Legislature. And they allege the city has no power to impose it.

The lawsuit doesn’t challenge the 1 percent tax that workers pay on their earnings in the city.

A spokeswoman for Mayor Francis Slay says the payroll tax on employers is expected to raise about $32.8 million in revenue this year. Maggie Crane adds that the city attorneys hadn’t yet seen the suit and were reserving comment.
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Information from: St. Louis Post-Dispatch