More businesses say city is trying to re-label them so they pay - KMOV.com

More businesses say city is trying to re-label them so they pay more in taxes

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Jackson's Pianos. Credit: KMOV Jackson's Pianos. Credit: KMOV
ST. LOUIS, Mo. (KMOV.com) -

More St. Louis City businesses say the city is trying to reclassify them in a way where they would pay more in taxes.

Joe Jackson opened Jackson Pianos in St. Louis nearly 20 years ago. In 2016, the city’s licensing office contacted him about reclassifying his business into a manufacturer. Jackson says the move is giving him plenty of headaches.

“And additional taxes that we didn’t have to pay before that we don’t believe we should even owe,” Jackson said.

Jackson said he’s paying hundreds more in taxes. The city is collecting cash for every piece of equipment capable of “adding value” to his work.

“Moves like this make it that much harder to keep justifying staying in the city,” said Jackson.

After leaving multiple messages, News 4 stopped by the office of St. Louis License Collector Mavis Thompson but were turned away.

Daniel Morgan, who owns a tailor shop in Benton Park, said the License Collecting Office pressed him to reclassify him during this tax season. He said Thompson's office finally let up on Tuesday, telling him he didn’t have to reclassify and even offering an apology.

Thompson said businesses that don’t reclassify by the end of March should expect to appear in court.

Changing classification to a manufacturer means a lower rate on personal property taxes but it would also mean the Revenue Collector and not the License Collector would benefit because it keeps a percentage of manufacturing fees.

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