South St. Louis County News

St. Louis Call Newspapers

South St. Louis County News

St. Louis Call Newspapers

South St. Louis County News

St. Louis Call Newspapers

Panel to make recommendation to Crestwood board on sales-tax sharing options

City would benefit by backing sharing option, Schlink says

The Crestwood Board of Aldermen soon will take a position on sales-tax sharing bills making their way through the state Legislature.

Aldermen approved a motion to form a committee to study three sales-tax sharing bills and make a recommendation to the board regarding which one to support. Committee members were not named at the Feb. 28 board meeting.

City Administrator Petree Eastman said a proposal by the St. Louis County Municipal League, which is expected to have a sponsor within the next week or so, would allow for more income from annexation adjustment and non-pooled local sales tax — almost $119,000 for the city.

“It’s only a little bit less under the Fenton proposal. So I think the impact is in there. It will depend largely on how our numbers go …,” Eastman said.

The proposal would also leave the 1-percent sales-tax sharing in place, with no cap, along with authorizing the county to seek voter approval of a quarter-cent, local-option sales tax in unincorporated areas, according to information Eastman provided to the board.

Under the Municipal League’s proposal, St. Louis County would lose about $3 million in sales-tax revenue, but that loss could be recouped if voters approve the local-option sales tax.

House Bill 1335, which is supported by Fenton, Chesterfield and St. Ann, would put a 15-percent cap on sales tax sharing, end annexation adjustment sharing with the county and allow cities to choose if they want to be an A city or B city.

A 1977 state law designated county municipalities that were levying a local sales tax as point-of-sale, or A, cities, therefore making other cities and unincorporated areas in the county pool, or B, cities.

After 1984, if an area was annexed into a city it became a pool area.

Until 1994, A cities retained revenue generated from a countywide, 1-percent sales tax. B cities redistributed that revenue on a per-capita basis.

State legislation in 1993 required A cities to share part of the 1-percent sales-tax revenue with B cities, based on a progressive sliding scale.

However, areas annexed by point-of-sale cities after 1995 are still in the sales-tax pool.

As a result, cities, such as Crestwood, have point-of-sale and pool areas, making them A/B cities.

Additionally, HB 1335 gives cities the option of making annexation areas point-of-sale or pool, and Crestwood would gain $64,910.

The St. Louis County proposal, HB 1463, would distribute the 1-percent sales tax based on population, which Eastman said would cost Crestwood about $520,000.

Mayor Jeff Schlink said at some point the board has the option to decide if there is a particular bill it wants to support.

“I think that it’s beneficial to the city to throw its hat in,” Schlink said. “The question is do we get behind a proposal that doesn’t have a sponsor, do we support the county or, obviously, do we support Fenton and Chesterfield and a number of other cities as well that are making that proposal?”

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