Politics & Government

Council Set For Final Vote On Utility Tax Cut

A Creve Coeur councilwoman said the move would bring fairness to residents who can't write off utility taxes like a business can.

Creve Coeur's City Council is poised to vote next month on a proposal that would reduce electric utility gross receipts tax rates for city residents.

Ward 4's Jeanne Rhoades' official legislation calling for a 1.5 percent cut was introduced Monday night after being the subject of recent discussion. Such a move would mean a savings of between $18-$36 in annual savings for customers who normally pay $100 to $200 for their electric bill each month.

Rhoades has called the decrease a modest one intended to bring relief, particularly for fixed income residents who have felt the financial pinch amid the economic recession in recent years. She said the move would bring some fairness to residents who, unlike businesses cannot write off utilities for tax purposes.

Ward 1 Councilmbembers David Kreuter and Cynthia Kramer recently held a pair of ward town hall meetings and Kreuter said the feedback he received from a handful of residents was that the city should hold onto the money it would lose from such a move--estimated at roughly $186,000--and spend it wisely on something else.

Ward 3's Charlotte D'Alfonso said she's heard from about six residents who say they favor the cut, and would like an even greater one.

Monday's discussion followed a first reading of the bill proposing the change. A second reading followed by a vote will likely come at the next council meeting in August.

Tell us what you think--Should the city of Creve Coeur reduce utility tax rates? 


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