Are There Companies That Receive Earnings Tax or Payroll Tax Exemptions?

There are no companies or special redevelopment agreements that exempt a business from earnings or payroll taxes. There are, however, special economic incentives to help grow business development in St. Louis. In these agreements, companies continue to pay payroll taxes and employees pay the 1 percent earnings tax. To invigorate redevelopment, 50% of the extra earnings, generated after the special agreement is enacted, are taxed and redirected back to the company as part a tax increment financing, or TIF contract. All agreements include an expiration date.

There is another rare financial arrangement similar to TIF designed to expand employee tax rolls within the city. Here again, 50% of the extra earnings, generated after the special agreement is enacted, are taxed and redirected back to the company. Redirection agreements are generally used by companies for construction projects to accommodate the influx of new employees. Again, this special incentive is rare and is also for a limited time period.

The following companies received special incentive tax redirections in 2015: 

• Schnucks 9^th Street Garage
• Wellpoint Companies
• Poisinelli Shugart
• One N Jefferson

By law, the earnings tax is not levied on dividends, interest, pensions, social security, unemployment benefits, worker's compensation, disability payments, IRAs or other retirement income.