Taxing districts within the St. Louis area can be a little confusing. The City periodically receives inquiries about taxes whether they be property, utility, sales, or income. Please note that the City of Maryland Heights is NOT involved in the assessment, billing or collection of property, income or other state and federal taxes. Here are a few answers to common tax questions we receive.
If I own property in Maryland Heights, how much of my taxes go to the City government?
The City of Maryland Heights levies no property tax on any residential or commercial property, real estate or personal. Residents and businesses owning property within Maryland Heights’ city limits pay NO property tax to the City.
If my property tax dollars don't support city provided services, what services do they fund?
On your property tax bill, every taxing jurisdiction is listed. This includes special districts servicing the area you live such as schools, fire protection, sewer, community colleges and libraries. Other taxing bodies include St. Louis County, the State of Missouri and the Zoo-Museum district.
How is my property tax bill calculated?
For real estate and personal property such as a home or car, respectively, you pay based on its assessed value. More specifically, your bill is calculated by applying the tax rate to every $100 of assessed valuation.
How is my property's assessed value determined?
For your home, this is determined by multiplying the market value by 19 percent. For vehicles and boats, this is determined when the value is multiplied by 33.3 percent.
This is a little confusing. Can you give an example to illustrate this?
If a home's market value is $150,000, multiply by 19 percent (.19) to derive the assessed value. In this case, $28,500.
To figure the amount to be paid to each district, divide the assessed value by 100 and multiply that number by the tax rate. In this example, $28,500 divided by 100 equals 285. If a district's rate is $.0300, the amount would be $8.55.
How are tax rates determined?
Although some limitations are defined by state statute, the local taxing districts set the tax rates. Generally, tax increases must be approved by voters within the district.
What rates am I paying as a property owner in Maryland Heights?
There are some rates that apply to all property owners of St. Louis County. Other rates are unique to the address of your home or personal property registration. These include school and fire protection districts. For a listing of these districts and their associated tax rates please visit www.marylandheights.com/LocalTaxDistricts.
What is the sales tax rate and what services does it fund.
The City receives revenues from 3 different sales tax sources—a county-wide one-percent tax on retail sales that is distributed by municipality population, a half-cent municipal tax on retail sales that can only be used to fund stormwater control and/or park services, and a half-cent public safety sales tax. The State and St. Louis County levy sales taxes to fund a variety of services. The table below provides a break down of the total sales tax rate levied on retail sales within Maryland Heights.
|Sales Tax Rates by Service Funded|
|Metro Transit 2010||.500|
|Children Mental Health||.250|
|St. Louis City & County
Trails, Parks & Arch
|State of Missouri||4.225|
How is the Maryland Heights Parks/Stormwater sales tax distributed?
Since 2015, all of this revenue has been distributed to the Parks Fund to fund recreation projects including the new community center, programming, trail expansion, and Aquaport improvements planned to occur over the next two years. Stormwater projects are now funded from the Capital Improvement Fund.
What is the tax rate for utilities in Maryland Heights and how is it collected?
The City levies a 5.5 percent gross receipts tax on utilities doing business within its boundaries. This tax is passed on to customers by the utility company and remitted to the City each subsequent month. The City distributes the tax to the General Fund (5 percent) and the Streetlight Fund (0.5 percent).
How are income taxes administered?
Income taxes are not collected or received as a revenue source for municipalities. Personal income taxes are collected at both the state and federal level in two completely separate processes. The amount of income tax that you owe each year is based on your income level.
In Missouri, the top personal income tax rate has declined to 5.9 percent from 6 percent beginning with taxes paid in 2018. It is positioned to drop to 5.5 percent over the next five years provided that current tax law remains in place. For more information about Missouri income taxes, visit www.mo.gov/home-family/taxes/. For more information about the federal income tax policy, visit www.irs.gov.
What is the City's largest revenue source?
Gaming tax—the City receives a tax of $1 per casino admission and 2.1 percent of the net gaming receipts of casino operations at Hollywood Casino. The collection of the taxes and disbursement to the City is administered by the State. Gaming tax revenues, which are projected to total $10.5 million in 2018, are deposited into the General Fund and Capital Improvement Fund where they cover expenditures including trash/recycling/yardwaste collection (free to all residents), road improvement projects and general operations.
For more information about local taxes, please contact MHLife@marylandheights.com.