Graduated Business License Fee Schedule and Requirements

Law

St. Louis City Ordinance 60643 imposes a graduated business license tax “on all merchants, manufacturers, businesses, avocations, pursuits and callings that are not exempt from the payment of a license by law.” The graduated business license tax is calculated and based on the licensee’s number of St. Louis employees during the previous calendar year.

Terms

The term of the annual license runs from June 1 through May 31. The Graduated Business License must be renewed each year and the license tax paid before June 1 to avoid any penalties provided by law. You must obtain a Graduated Business License before commencing business activity.

Taxes

The License Collector cannot issue any business license or license renewal until all current and past taxes are paid. These include:

• personal property taxes
• earnings taxes
• payroll taxes
• license taxes
• and permit and certificate fees due the city. 

Fees for Graduated Business License

• New businesses that start between June 1 and January 1, the initial fee is $200.00. 
• New businesses that start after January 1 and up to May 31, the fee is $100.00.

Renewals

Renewal fees are based on the number of St. Louis Employees 

To determine the number of employees to be reported, count the number of full time and full time equivalent employees (including owners, partners and officers) in the previous calendar year who have worked within the City of St. Louis. 

St. Louis employee as used herein means an individual person performing work for remuneration who is employed for (1920) hours or more in any calendar year. 

A full time equivalent means each group of (2) or more part-time employees who in the aggregate are employed by the same employer for (1920) hours in any calendar year.

Fee Schedule (Fiscal Year 2006-2007)

St. Louis Employees	Graduated Business License Tax
0-2	$150
3-5	$250
6-10	$500
11-20	$1,000
21-30	$1,500
31-40	$2,000
41-50	$3,000
51-75	$5,000
76-100	$7,500
101-150	$10,000
151-200	$13,500
201-300	$17,000
301-400	$20,000
401-500	$23,000
501 or more	$25,000

Fee Schedule (Fiscal Year 2007- Present)

St. Louis Employees	Graduated Business License Tax
0-2	$200
3-5	$325
6-10	$675
11-20	$1,500
21-30	$2,250
31-40	$3,000
41-50	$4,500
51-75	$7,500
76-100	$11,250
101-150	$15,000
151-200	$20,250
201-300	$25,500
301-400	$30,000
401-500	$34,500
501 or more	$37,500

Late Filing and Late Payment Penalties

To avoid penalties the Graduated Business License application and payment must be received by the License Collector’s Office before June 1 of the license year.

There are two types of penalties imposed: one for late filing and one for late payment.

The filing penalty is five percent per month or fraction thereof with a maximum of twenty-five percent of the tax due.

If payment is not made within sixty days of the date due, the tax is increased twenty percent. The following schedule shows the combined late filing and payment rates:
 

First Month = 5%	Fourth Month = 40%
Second Month = 10%	Fifth Month and After
Third Month = 35%	Total Penalty = 45%

No business license will be issued until all late filing and payment penalties are paid.

It is the policy of the License Collector to begin closure procedures on June 15th of any business operating without a valid business license.