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Proposition A

• repeal the authority of certain cities to use earnings taxes to fund their budgets;
  
• require voters in cities that currently have an earnings tax to approve continuation of such tax at the next general municipal election and at an election held every 5 years thereafter;
  
• require any current earnings tax that is not approved by the voters to be phased out over a period of 10 years; and
• prohibit any city from adding a new earnings tax to fund their budget?

A “no” vote will not change the current Missouri law regarding earnings taxes.

If passed, this measure will impact taxes by removing the ability of cities to fund their budgets through earnings taxes.  The only exception is that voters in cities that currently have an earnings tax may vote to continue such taxes.

The proposal could eliminate certain city earnings taxes. For 2010, Kansas City and the City of St. Louis budgeted earnings tax revenue of $199.2 million and $141.2 million, respectively. Reduced earnings tax deductions could increase state revenues by $4.8 million. The total cost or savings to state and local governmental entities is unknown.