ST. LOUIS COUNTY—Cities are lining up to tell state lawmakers they oppose bills introduced in Jefferson City that would eliminate state and local sales taxes collected on food. 

The idea is to allow shoppers to keep more of their money at a time when inflation worries are still top of mind. But the problem, local municipal leaders say, is it would lead to service cuts at the local level.

Chesterfield’s city council voted unanimously Monday night on a resolution, following a similar measure by Manchester’s board of aldermen last month.

At least a half dozen sales tax exemption or elimination bills have been filed on the topic so far this year in the House and Senate, by both Republicans and Democrats. Only one proposes an alternate revenue stream for local governments. House Minority Leader Crystal Quade’s bill would replace lost money by closing the so-called “Yacht Tax loophole” and by adding a 1% tax on foreign-owned farmland. Funds would be earmarked for a pot of money local municipalities could tap to recover lost revenue.

In a recent newsletter to city residents, Creve Coeur officials said legislation without a way to recoup losses would mean a dent of more than $2 million in annual revenue to fund city services.

Manchester officials say it would mean a $5.4 million hit. Monday night, Chesterfield City Administrator Mike Geisel told council members there it would be a $15 million jolt. Almost 60% of the city’s revenue comes via sales tax, which funds roughly half of the city’s police department and the entire parks and recreation department, among other services.

Chesterfield does not collect property tax revenue.

Geisel told Spectrum News that the situation creates a possibility of default because cities issue debt based on revenue streams. If the city loses the money and doesn’t want to cut services, it would have to go to voters to start collecting a property tax, “which no one wants to do.” 

City officials say they’re also concerned about the state’s ability to overrule the will of local voters.

“It’s the citizens of the city of Chesterfield who have the right to implement these taxes and have the right to abolish them if they want. It’s not the state’s job to come in and tell a municipality that their residents no longer have that right. And I think that’s the bigger issue here. We have a government that claims to be a conservative government as a whole that’s now trying to regulate its citizens,” Councilmember Aaron Wahl said Monday.

After a little more than a month in session, none of the bills, including one authored by former Chesterfield City Councilmember Ben Keathley has reached the point of getting a committee hearing. Another author, State Rep. Adam Schnelting, R-St. Charles, bemoaned the fact that none of the sales tax exemption bills appear to be moving this session.

Other lawmakers who support the idea have privately said they’re worried it could get lumped in with other tax reform proposals that might not have as much bipartisan support.

When it comes to tax policy, bills on property tax and personal property tax changes appear to have more traction at the capitol this year.

Quade still sounded a tone of optimism.

“There’s bipartisan support for eliminating the sales tax on food and I expect there to be movement forward. Whether it’s my bill or another, I will work with anybody who wants to put money back in the pockets of working Missourians,” she said.