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St. Louis Taxpayers to Get Refunds Worth $75 Million After Winning Battle Over Remote Work Tax

A court ruling has ensured that taxpayers who worked remotely during the pandemic and paid earnings taxes to St. Louis will receive refunds. The ruling states that non-city residents should not be taxed for work performed outside the city. Claims for refunds are estimated to total around $25 million per year.

Remote Workers in St. Louis to Receive Pandemic Earnings Tax Refunds After Court Ruling

Following a court ruling, the city of St. Louis has announced that it will refund pandemic earnings taxes to remote workers. The refunds will apply to those who worked outside the city due to the COVID-19 pandemic, but were still subject to the city’s earnings tax. The decision comes after a lawsuit was filed by a group of remote workers who argued that it was unconstitutional to tax them for work performed outside the city. The ruling is a significant victory for remote workers in St. Louis, who will now receive refunds for taxes paid on income earned while working remotely.

St. Louis to Refund Remote Workers’ Pandemic Earnings Taxes Following Court Ruling

As per the report by the Washington Examiner, individuals who worked remotely during the pandemic and paid earnings taxes to the City of St. Louis will now receive refunds due to a significant legal change. This follows the announcement of a settlement by attorneys Bevis Schock and Mark Milton, which brought an end to a three-year legal dispute. The case was initiated by six individuals who were denied refunds by the city’s tax collector, Gregory Daly. They argued that individuals who do not reside in the city should not be liable to pay the 1% earnings tax if they worked remotely. The court agreed with their argument and declared that the city could not impose this tax on remote work performed outside the city.

According to Gregory Daly, responsible for tax collection, he was obligated to collect the taxes unless instructed otherwise by the court. With the court’s decision now made, eligible individuals are permitted to file for refunds for the years 2020 through 2022. The filing window is open for 90 days from July 1st. The city is expected to suffer a hefty financial blow, with a potential annual payback of around $25 million.

St. Louis taxpayers are finally getting a $75 million windfall after a years-long battle over remote work tax. The St. Louis Post-Dispatch has captured a photo of the event.

Attorneys Praise Settlement on St. Louis Remote Work Taxes, Highlighting Legal Compliance and Fairness

In addition, both attorneys Schock and Milton commended the city’s legal team for their professionalism, despite the differences in court. According to them, the settlement is advantageous for taxpayers and emphasizes the significance of adhering to the law. It’s worth noting that lawmakers are currently examining the prospect of revising local tax regulations to ensure equity for all.

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