Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Local Taxation topic
No spam. Unsubscribe anytime.
Saint Charles committee continues deferral of penny‑per‑push video‑gaming tax amid ongoing litigation
Summary
The Government Operations Committee approved an extension to delay imposition of a penny‑per‑push video‑gaming tax until Dec. 31, 2026, citing pending statewide litigation over municipal taxing authority; staff estimated roughly $300,000 revenue per penny if enacted.
The Saint Charles Government Operations Committee voted to continue deferring the city’s implementation of a penny‑per‑push video‑gaming tax until Dec. 31, 2026, citing unresolved litigation over municipalities’ authority to impose the tax.
Heather McGuire, city staff, told the committee the council previously passed an ordinance in 2022 preserving the right to enact the tax but that litigation remains unsettled. “Because there is still pending litigation regarding the city's ability…to actually impose this type of tax, we are recommending that we defer the implementation of this for 1 more year to 12/31/2026,” McGuire said.
Committee members asked whether the action was a deferral rather than repeal; McGuire confirmed the ordinance remains on the books and the vote only delays imposition. During questioning council members discussed the possible fiscal impact. One member cited an approximate figure of $300,000 in annual revenue per penny of tax; other speakers said they opposed adding what they called another user tax while some supported retaining the option.
A motion to approve the ordinance to continue the deferral was moved and seconded as recorded in the transcript; the committee carried the motion by roll call and the chair announced Item 5a carries.
Why it matters: The extension keeps the city’s option intact while courts or the General Assembly address whether municipalities can legally impose the tax. If the legal landscape changes, the city would still have the ordinance in place but not yet collecting the tax.
What’s next: Staff noted City Attorney McMahon can provide further litigation updates to Council as they become available; no immediate collection will begin unless the ordinance’s effective date is changed by future action.
