Kansas City and St. Louis voters approve 1% earnings tax renewal measures

According to unofficial election results, St. Louis Proposition E, which renewed the city’s 1% earnings tax, was approved with 79.4% of voters favoring the earnings tax and 20.6% voting against it. Kansas City voters also approved Question 1 to renew the city’s 1% earnings tax with 75.9% of voters supporting it and 24.17% opposing it. 

St. Louis officials estimated the earnings tax would generate $159 million in the fiscal year 2021 (excluding the deferral of $16.2 million in earnings tax revenue from 2020). According to the ordinance that the City Council of Kansas City passed to refer the question to the ballot, the earnings tax generates 44% of the city’s budget or approximately $270 million annually. 

Both cities last renewed the earnings tax in 2016. Kansas City approved it with 77% of voters favoring its renewal, and St. Louis approved it with 72% of the vote.

A 2010 statewide ballot initiative, Proposition A, required voters in Kansas City and St. Louis to renew the tax every five years. If one of the cities does not approve the earnings tax, the tax would be incrementally phased out in that city over 10 years and could not be reinstated.

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