Tax Revenue Overview

The City is a suburban residential community with an economic base represented by a mixture of manufacturing, commercial enterprises, numerous small specialty shops, and support services. The City currently has approximately 325 business establishments, including approximately 12 manufacturing and warehouses enterprises throughout two industrial parks. The City does not have a central business district. Commercial enterprises include numerous small specialty stores and several small strip shopping centers located along Olive Boulevard, the major thoroughfare of the City.

General Property Tax
Property tax on all residential real property is $1.27 per $100 of assessed valuation for 2015. Of the $1.42/$100 in valuation, $0.623 went to the General Fund and this constitutes roughly 25% of General Fund total revenue. $0.227/$100 goes to the Pension Fund and this tax constitutes 100% of that funds revenue. The remaining $0.42/$100 goes toward debt repayment on the Series 2014 General Obligation bonds authorized in August 2014 for the construction of a new public safety and administration building.  

Not later than September 30 of each year, the City Council sets the rate of tax for the City and files the tax rate with St. Louis County (the "County") by October 1. The Missouri State Auditor's office annually certifies all property tax rates do not exceed statutory limits. This certification is presented to the County for acceptance.

Tax rates are set annually by the City Council with assessment, billing, and collection administered by St. Louis County.
In the 2015 Tax Rate Book linked above on page 9, Olivette is city #42 and currently are codes 117,117AC,117AK, and 117IB which correspond to pages 545-563 in the rate book.

Real & Personal Property

Taxes are levied on all taxable real and personal property owned as of January 1 in each year. Certain properties, such as those used for charitable, education, and religious purposes, are excluded from ad valorem taxes on both real and personal property.

Real property within the City is assessed by the County Assessor. The County Assessor is responsible for preparing the tax rolls each year and for submitting tax rolls to the County Board of Equalization. The Board of Equalization has the authority to question and determine the proper value of property and then adjust and equalize individual properties appearing on the tax rolls. By statutes, tax bills are to be mailed in October; however, the volume of assessment complaints required to be reviewed by the County Board of Equalization can affect the date on which bills are actually mailed.

Payment of tax on real and personal property is due by December 31st after which date they become delinquent and accrue a penalty of one percent per month.

Billing and collection of property taxes is performed by the County for personal property and by the City for real property. The County Collector of Revenue deducts a commission equal to 1.5% of the taxes collected for his services. After such collections and deductions of commission, taxes are distributed to the City.

Use Tax
A local use tax was approved by voters in August of 1996. This use tax is added to the state use tax and collected by the State of Missouri for monthly distribution.

More information on use taxes can be found on the Missouri Department of Revenue website.

Capital Improvement Sales Tax
In November 1995 voters approved a ½% sales tax for capital improvements that the City intends to use primarily for street maintenance and capital improvements relating to streets and for the cost of maintaining such improvements. The City expects to receive approximately $450,000 to $500,000 from this tax annually. By statute, this tax must be used solely for funding capital improvements and for the cost of maintaining and operating such improvements.

By statute the City must deposit this tax in a fund separate from all other revenues of the City. Accordingly, the City has established and deposits the tax in the Capital Improvements Fund (FUND 05).

The Hancock Amendment
On November 4, 1980, Missouri voters approved an amendment to the Missouri Constitution to limit taxation and government spending.

The amendment, popularly know as the Hancock Amendment, requires political subdivisions of the State of Missouri to obtain voter approval to impose or to increase any "tax, license or fee." The Missouri Supreme Court, in Keller v. Marion County Ambulance District has interpreted this phrase to include only general taxes and licenses or fees that, in substance, are taxes.

The amendment also limits the rate of increase and the total amount of taxes on property which may be imposed in any year without voter approval. If the assessed valuation of property, excluding the value of new construction and improvements, increases by a larger percentage than the increase in the general price lever from the previous year, the maximum authorized current levy applied thereto in each political subdivision must be reduced to yield the same gross revenue from existing property, adjusted for changes in the general price level, as could have been collected at the existing authorized levy on the prior assessed value.

The Hancock Amendment does not apply to taxes imposed for the payment of principal and interest on general obligation bonds or other indebtedness authorized by a City-wide referendum. 

Gross Receipts Tax
Gross Receipts taxes are collected at a rate of 10% on all public utilities which include land and cell phones, water, natural gas, and electrical usage. The gross receipts provide around 25% of the total general fund revenue.

Sales Tax
The sales tax rate within the City of Olivette is 8.613%.  This rate consists of:
State of Missouri
4.225 %
St Louis County
2.888 %
City of Olivette
1.500 %
8.613 %

The City of Olivette levies 1.5% local sales tax on all purchases within the City. The timing and implementation of these local taxes are:
  • 0.25% Local Option tax approved November 1993
  • 0.50% Capital Improvements tax approved November 1995
  • 0.25% Fire Operations tax approved November 2001
  • 0.50% Stormwater/parks tax approved April 2002

Information regarding sales taxes can be found at the Missouri Department of Revenue Sales Tax Page.