Pooled Sales Taxes: Four More Days In Jefferson City

Proposed alterations to St. Louis County's pooled tax system abounded in a variety of forms during the 2011 Missouri legislative session. Each year, 45 percent of Wildwood's total "general fund" operating revenues derives from these shared county taxes, as a result of a decades-long agreement to approach county sales taxes through a collective manner.

In fact, the pooled sales tax method was put in place in 1993, two years before Wildwood was incorporated; city officials note the approach to handling sales tax was, in essence, decided for them. Wildwood now stands to lose approximately $2.1 million annually if the tax system would be halted.

At Monday evening's city council meeting, Wildwood Mayor Tim Woerther said recently hired by the cities of Wildwood, Webster Groves, University City and St. Louis County reported that activity about this issue was still being channeled through amendments to other bills during this week's final few days of the 2011 legislative session.

"Just last week, we were told about a bill that proposed Fenton could opt out of the county's pooled tax system in areas it had annexed, so it could keep point-of-sale tax revenue from those areas," said Woerther.

Woerther said the city's lobbyists shared that county tax alteration language now sits as an amendent to a bill sponsored by Missouri Sen. Kevin Engler (R-03), who last was reportedly going to have it removed from his bill. "He's hearing too much opposition to the idea, and wants it removed," said Woerther. "It's looking good at this juncture regarding the tax matter, but we still have several days left of the session, so we'll touch base again Friday evening about it."

Engler's legislation, House Bill 226, modifies provisions relating to ambulance and fire protection districts.

As reported in Eureka-Wildwood Patch on April 27, officials from the county and three municipalities banded together to secure a lobbyist firm to represent their interests in how the county's sales taxes are distributed. St. Louis County and other municipalities, such as Wildwood, seek to leave the sales tax system the way it has operated since 1993.

Some municipalities, such as Fenton and Chesterfield, suggested , as reported in Fenton-High Ridge Patch.

Under the current system, municipalities are divided into two camps:  point-of-sale, or “A” cities; and pool, or “B” cities. The “A” cities are required to share a portion of their 1-cent countywide sales tax revenues with both the “B” cities and St. Louis County on a per-capita basis. Under this system, the pool cities get $124 per person, annually.

Earlier in the session, was proposed to change the county's tax system, but that piece of legislation has not advanced.

Wildwood city administrator Dan Dubruiel indicated the city's annual percentage of sales tax funding represents $3,825,000. "The effect of HB 534 and some of its 'clones' would be to cut Wildwood's overall general fund revenues by 25 percent," he said.

Two local concerns about reversing the county's current pooled tax system have been securing a transition, or exit, strategy after nearly 20 years of operating this way. Opponents to changing the system repeatedly have highlighted that an abrupt change would obliterate certain smaller St. Louis County municipalities. Secondly, some officials and residents are concerned about there being enough cash flow to support 90 cities' self-driven retail bases in the future, should all St. Louis County municipalities be prompted to create their own business districts, stores and consumer activity by reversing the pooled system.

St. Louis County Municipal League representatives formulated a task force in April to address future options on a countywide basis.