Detailed Information
Form E-1
Form E-234
Form P-10
Form W-10, W-11

Who is subject to the tax?
Form E-234 is for all business taxpayers. The multiple purpose of the return is to include:

Individual/Self-Employed, E-2, is for the City Resident individual who performs work or services on a contract basis and received a Federal Form 1099-Misc. Some examples of this could include a cab driver, a hauler, babysitter, Tupperware salesperson, Avon salesperson, or independent trucker. A resident owner/self employed individual operating a business; trade, professional service, or undertaking for profit within the City of St. Louis cannot allocate the net profit because the location of the business is treated as a taxable resident. The individual proprietor or self-employed owner, including a non-resident owner, must file the tax return showing the business profit, in full, and regardless of where it was earned. Employers should report using the Federal I.D. number and non-employers should report using Social Security Number.

Partnership, E-3, is for owners doing business together. An association includes a partnership, limited partnership, unincorporated business or enterprise, which is owned by two or more persons. A married couple who owns a business is not automatically a partnership. A husband and wife are only considered a partnership when there is a partnership agreement and a separate Federal I.D. number. Taxes due from a partnership are paid by the partnership. The individual partners are not allowed to file and pay their own share of profit.

Corporation, E-4, is for incorporated business or joint stock association under the laws of the United States, of any state, territory or foreign government. The corporate entities are responsible for filing and paying the taxes. Individual shareholders are not allowed to file for their own share of the profit. The corporate entity is allowed to allocate the earnings based on business done in the City of St. Louis, even though the only location is in the City. All non-resident businesses that have branch offices in the City of St. Louis are allowed to allocate their earning based on the amount done inside the City.

Non-Profit Corporation (or Not-For-Profit Corporations) will be exempt from earnings tax provided a photocopy of either the State issued Certificate or the Certificate issued by the Internal Revenue Service is received by the Collector of Revenue. After the notice has been received the corporation will be exempt from filing a St. Louis Earnings Tax Return.

When is the return due?
Form E-234 and payment for Earnings Tax is due on April 15. A fiscal year entity has 105 days to file the return after the close of the year. A request for extension of time must be filed by the due date.

What is the tax rate?
The earnings tax rate is 1% of taxable profit.

How is a request for extension of time handled?
Request for extension of time to file Form E234 must be made prior to the due date using Form E-8. Send in the request along with an estimated tax payment. The payment must be at least 90% of the tax due. When the payment on deposit is less than 90% of the earnings tax due when the final return is filed then penalty and interest should be added on to the tax due amount for the months retroactive to the original due date. If the company anticipates a loss, it should state it on the extension request. The business must be current on all earnings taxes, payroll expense taxes and property taxes filings before the Collector of Revenue will approve the extension request. Any delinquent tax will cause the extension to be rejected and 15 grace days are given to correct the situation; file the returns; and make payment on the delinquent account; and then re-submit a request for extension of time for approval.

When a business overestimates the tax due on the extension, the return when filed later on should indicate a request for refund when line 14 is negative, or to apply the overpayment to the future tax year. Refunds must be for more than $1.

What other support document is needed?
Amounts in Section A - Net Profit (or Loss) on line 2, 4, and 6 must be supported by attaching schedules. The business may elect to attach a copy of the Federal Return and Schedules or attach your Profit & Loss Financial Statement to support these figures.

Form E-6 of 1099-Misc. payments over $1000 or Federal Schedule G must be completed for reporting the earnings, commissions, bonuses, professional fees, directors fees, management fees, consulting fees, independent contractor, or other compensation on which City Earnings was not withheld, including payments to subcontractors. Form E-6 is due on March 1, each year, otherwise the expense deductions on the E-234 return may not be allowed.

What expenses can be deducted?
All necessary expenses of the operation are allowable deductions from gross receipts except for Federal and State Income Taxes, City Earnings Tax, Contributions, Life Insurance premiums including those on partners or corporate individuals, corporate dividends, withdrawals and other charges to capital or surplus. These non-allowable deductions should be classified as other income and included in net profit.

What income is exempt?
Interest received from investments in government securities including United States and any political subdivision, State or Municipal is exempt from earnings tax. All dividend income from investment is exempt.

Does earnings tax apply to income from rental property?
Commercial or residential rental property owned by a Partnership or Corporation is subject to Earnings Tax (except property that is leased under a Triple Net Lease). Rental property owned by an individual is not subject to the Earnings Tax.

What is the basis of allocation of net profit?
The formula, if applicable, consists of the following factors:

1. The value of real and personal property and inventory within the City of St. Louis and outside the City. Rent paid is capitalized times eight for the purpose of allocation.
2. Wages paid within the City of St. Louis and outside the City.
3. Gross receipts from City of St. Louis transactions and outside the City.

What is the method to close the earnings tax account?
When a business closes or quits doing business or performing services in St. Louis, then the notice should be given on the Form E-234 return indicating the date it ceased operation, closed, or sold to a new ownership. Form E-5 can be sent to the Collector of Revenue to report a termination, however other written notice is accepted. Please provide in the correspondence a name and phone number so we may solve any problems.

Where is the return sent?
Send check or money order payable to Gregory F.X. Daly, Collector with the return to: