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Missouri Supreme Court rules against Chesterfield over taxes

December 24, 2019 GMT

JEFFERSON CITY, Mo. (AP) — The Missouri Supreme Court has upheld a 1977 state law dictating how St. Louis County municipalities distribute their sales tax revenue despite a challenge from the city of Chesterfield.

The unanimous decision was announced Tuesday.

Chesterfield Mayor Bob Nation told the St. Louis Post-Dispatch that the city is “not pleased but that’s the way it goes.” He said it’s too early to say what the city will do next but “this is probably the last avenue we have.”

Chesterfield has a bustling and wealthy retail district. The city is one of a handful of Missouri municipalities required to pool sales tax revenues, which are then distributed to other members of the pool based on population.

Municipalities like Webster Groves, which lack the acreage for huge retail complexes, get more tax revenues than they generate. But they also supply more shoppers than they attract.