BB&D Obtains Summary Judgment Declaring St. Louis Payroll Tax And Other Ordinances Are Constitutional

BB&D member David H. Luce represented the Collector of Revenue for the City of St. Louis who was sued, along with the City, by two taxpayers who alleged that the Ordinance creating the City’s Payroll Tax and two redevelopment ordinances were unconstitutional.  The taxpayers asked the court to enjoin the Collector from collecting the payroll tax, which was enacted in 1988 after city voters approved it and generates nearly $40 million dollars in revenue annually for the City.  The redevelopment ordinances allowed two employers with offices in the city to recoup costs they paid to enlarge and renovate their offices in order bring more employees to work in the city.  The costs were recouped by the employers receiving, on an annual basis, a portion of the increased earnings and payroll taxes generated from bringing the new employees to the City.  The Collector and the City filed a counterclaim asking the Court to find the Ordinances fully constitutional.  After extensive briefing and oral argument, the Court entered judgment in our client’s favor and found that the Ordinances were “valid, constitutional and fully enforceable.”  Read more here