Taxpayers who worked remotely during the pandemic and paid earnings taxes to St. Louis will receive refunds following a court ruling that non-city residents should not be taxed for work performed outside the city, with claims for refunds totaling around $25 million per year.
St. Louis to Refund Remote Workers’ Pandemic Earnings Taxes Following Court Ruling
According to the article in the Washington Examiner, in a big legal change, people who worked from home during the pandemic and paid earnings taxes to the City of St. Louis will get refunds. This comes after attorneys Bevis Schock and Mark Milton announced a settlement that ended a three-year legal fight. Six people who were denied refunds by the city’s tax collector, Gregory Daly, started the case. They argued that people who don’t live in the city shouldn’t pay the 1% earnings tax if they worked from home. The court agreed with them, saying the city couldn’t charge this tax on remote work done outside the city.
Gregory Daly, who was in charge of collecting the tax, said he had to collect the taxes unless the court told him not to. Now that the court has ruled, the settlement lets eligible people file for refunds for the years 2020 through 2022. They have 90 days starting on July 1st to do this. The city might have to pay back about $25 million each year, which is a big financial hit.
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$75 Million Windfall: St. Louis Taxpayers to Receive Refunds After Years-Long Battle Over Remote Work Tax (PHOTO: St. Louis Post-Dispatch)
Attorneys Praise Settlement on St. Louis Remote Work Taxes, Highlighting Legal Compliance and Fairness
Furthermore, despite the disagreements in court, attorneys Schock and Milton praised the city’s legal team for being professional. They said the settlement is good for taxpayers and shows the importance of following the law. This settlement comes as lawmakers are also looking at changing local tax rules to make things fairer for everyone.
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