- Agency
- City of St. Louis Collector of Revenue, Earnings Tax Department
- Paperwork
- Form E-5, the notice that cancels a city earnings tax account when a business closes, is sold or stops operating in the city
- The clock
- Send it once the sale closes, and file any final return the city expects for the last period
Watch for: Assuming the sale ends the account on its own. An open account can keep generating filing reminders, and missed returns can lead to penalties.
What the earnings tax is
The City of St. Louis charges an earnings tax that applies to people who work in the city and to businesses that earn income there. It is separate from Missouri income tax and is handled by the city's Collector of Revenue.
If your company registered an earnings tax account with the city, that account stays open until someone tells the office otherwise.
The cancellation notice
The Collector's office publishes Form E-5 for this purpose. It is a notice to cancel the earnings tax account because a business closed, was sold or stopped operating in the city.
The office lists a mailing address at 1200 Market Street, Room 410, plus email and fax options. Check the current office page before you send, since contact details can change.
If the account stays open
Some owners prefer to keep the account active for a year with no business activity. The office says that in this case you file a return that reports zero income earned in the city.
That is a different choice from cancelling. Cancel when the company is truly done in the city, and file zero returns only if the account will be used again.
What to settle before you send it
Ask your CPA whether a final return is due for the period that ended with the sale, and whether any earlier years remain open. The notice does not erase tax owed for periods before closing.
Also ask about other city accounts. A company with employees in the city may have payroll related accounts that run separately, and the same office can tell you which ones apply to you.
Put it in the sale agreement
- Who sends the cancellation notice and by what date
- Who files the final return for the last period
- Who answers a city letter about a period before closing
- Whether the buyer opens a new city account in its own name
Keep the proof
Keep a copy of what you sent and when. If the city later writes about the account, a dated copy and the closing date usually resolve it quickly.
Related steps
State sales tax is a separate matter, covered in tax clearance and successor liability. If your company is an LLC, read about ending it after the sale. For deal terms, see how the price gets split, then see what your company is worth.
This page is general information and not tax or legal advice. Confirm the process and timing with your CPA, your attorney and the City of St. Louis Collector of Revenue.