The City of Chesterfield receives a share of the county-wide 1% tax on retail sales through a pool comprised of unincorporated St. Louis County and many of the cities throughout St. Louis County. In St. Louis County, cities which were incorporated after March 19, 1984, or areas annexed after March 19, 1984, are automatically included in the sales tax pool under State law, with no option of withdrawal. In addition, under legislation passed in 1994, pool cities receive a share of the sales tax generated in point-of-sale cities, based on a county-wide redistribution formula. Sales tax is collected by the State of Missouri and distributed to St. Louis County, which administers the sales tax redistribution formula and wire transfers the appropriate pro-rata amount to each City. The amount collected varies due to fluctuations in sales and the fact that some businesses make quarterly contributions.
Utility Gross Receipts Tax
The City of Chesterfield levies a 5% gross receipts tax on electric, gas, telephone, and water within the City. The utility tax is collected by the utility companies at the time of their monthly billing and is remitted to the City within twenty (20) days following the last day of each month. Revenues from utility taxes, especially electric and gas utilities, are dependent on weather conditions. Utility taxes are also greatly impacted by rulings by the Missouri Public Service Commission (PSC).
Intergovernmental taxes include the motor fuel tax, motor vehicle sales tax, cigarette tax, the County Road & Bridge tax and several miscellaneous grants. Motor fuel and motor vehicle sales taxes are collected by the State of Missouri and remitted to the City for the purpose of maintaining roads and bridges. Receipts are distributed on a monthly basis. Motor fuel tax revenue is generated based on a charge of $0.17 per gallon. Motor vehicle sales tax is generated from State-imposed fees for licenses, plates, and sales tax and is remitted to cities based on the consumer’s residence and city population. Cigarette taxes are also collected by the State of Missouri and distributed to cities based on population. In St. Louis County, all municipalities share in a five-cent County cigarette tax levy. The County’s Road & Bridge tax is $0.105 per $100 of assessed valuation and is distributed to the City based on the City’s assessed valuation. It is billed along with other property tax assessments in the fall of each year and is due December 31. It is distributed to the cities (net of a 1% collection fee) as received and is intended, as its name states, for roads and bridges. Billings for the tax year are based on the assessed value of property as of January 1 of each year.
Public Safety Fund
Following the passage of Proposition P, the Council chose to create a new fund to receive the designated County funds and to track public safety spending therein. Currently the Prop P funds generate 20-25% of the total expenditures for Public Safety. The remaining revenues are transfers from the General Fund.
Capital Improvements Sale Tax Fund
The City of Chesterfield levies a ½-cent sales tax for capital improvements projects, including major upgrades / improvements to streets and sidewalks throughout the City. Voters approved this ½-cent sales tax in November 1996. The amount of revenue received from this ½-cent sales tax is only 85% of the amount generated within Chesterfield, due to a State law requirement that 15% of this total amount be shared with the Sales Tax Pool.
Parks Sales Tax Fund
Residents of the City of Chesterfield approved a ½-cent sales tax for Parks in November, 2004.Unlike the ½-cent sales tax for Capital Improvements, the City is able to capture 100% of the revenue, from this source, less a 1% collection fee assessed by the State.
Programs and User Fees
The City’s Parks, Recreation & Arts Department charges user fees for the Chesterfield Valley Athletic Complex, the Family Aquatic Center, and the Chesterfield Amphitheater.