Tax Revenue Overview
General Property Tax
City property tax on all residential real property is $1.241 per $100 of assessed valuation for 2017 bills. Of the $1.241/$100 in valuation, $0.601 is for General Fund usage and this constitutes roughly 25% of General Fund total revenue. $0.220/$100 goes to the Pension Fund for pension plan administration and employer contributions to the Salaries Employee Pension Trust. The remaining $0.42/$100 goes toward debt repayment on the Series 2014 General Obligation bonds authorized in August 2014 for the construction of a new public safety and administration building.
Not later than September 30 of each year, the City Council sets the rate of tax for the City and files the tax rate with St. Louis County (the "County") by October 1. The Missouri State Auditor's office annually certifies all property tax rates do not exceed statutory limits. This certification is presented to the County for acceptance.
Tax rates are set annually by the City Council with assessment, billing, and collection administered by St. Louis County.
In the 2016 Tax Rate Book linked above on page 9, Olivette is city #42 and currently are codes 117,117AC,117AK, and 117IB which correspond to pages 559-575 in the rate book. The 2017 Tax Rate Book will be available in December 2016.
Billing and collection of property taxes is performed by the County for personal property and by the City for real property. The County Collector of Revenue deducts a commission equal to 1.5% of the taxes collected for his services. After such collections and deductions of commission, taxes are distributed to the City.
A local use tax was approved by voters in August of 1996. This use tax is added to the state use tax and collected by the State of Missouri for monthly distribution.
More information on use taxes can be found on the Missouri Department of Revenue website.
Gross Receipts Tax
Gross Receipts taxes are collected at a rate of 10% on all public utilities which include land and cell phones, water, natural gas, and electrical usage. The gross receipts historically have provided around 25% of the total general fund revenue.
The sales tax rate within the City of Olivette is 9.113% as of October 1, 2017. This rate consists of:
|State of Missouri
|St Louis County
|City of Olivette
The City of Olivette levies 1.5% local sales tax on all purchases within the City. The timing and implementation of these local taxes are:
- 0.25% Local Option tax approved November 1993
- 0.50% Capital Improvements tax approved November 1995
- 0.25% Fire Operations tax approved November 2001
- 0.50% Stormwater/parks tax approved April 2002
Information regarding sales taxes can be found at the Missouri Department of Revenue Sales Tax Page.
The Hancock Amendment
On November 4, 1980, Missouri voters approved an amendment to the Missouri Constitution to limit taxation and government spending.
The amendment, popularly know as the Hancock Amendment, requires political subdivisions of the State of Missouri to obtain voter approval to impose or to increase any "tax, license or fee." The Missouri Supreme Court, in Keller v. Marion County Ambulance District has interpreted this phrase to include only general taxes and licenses or fees that, in substance, are taxes.
The amendment also limits the rate of increase and the total amount of taxes on property which may be imposed in any year without voter approval. If the assessed valuation of property, excluding the value of new construction and improvements, increases by a larger percentage than the increase in the general price level from the previous year, the maximum authorized current levy applied thereto in each political subdivision must be reduced to yield the same gross revenue from existing property, adjusted for changes in the general price level, as could have been collected at the existing authorized levy on the prior assessed value.
The Hancock Amendment does not apply to taxes imposed for the payment of principal and interest on general obligation bonds or other indebtedness authorized by a City-wide referendum.