Teleworkers Avoid St. Louis Earnings Tax, Missouri Court Says

Nonresident teleworkers for St. Louis-based companies are entitled to earnings tax refunds because a city ordinance is clear and unambiguous that the tax only applies to work done within the city’s boundaries, a Missouri appeals court said Tuesday.

The city assesses a 1% earnings tax on nonresidents’ salaries or wages for “work done or services performed or rendered in the City.” Using dictionary definitions, the Missouri Court of Appeals, Eastern District agreed with a group of teleworkers based outside St. Louis that “rendered in the city” refers to where the service is performed, instead of to where it’s transmitted.

“The ...