§ 68-385. Exemptions.

(a)

The income referred to in section RSMo § 92.130, as exempt from the earnings and profits tax of the city, shall not be taxable under this article.

(b)

Active duty pay exemption. The term "earnings" shall not include any compensation earned in the performance of active duty in the military service of the United States outside the city provided that during the time the taxpayer earned the compensation from active duty military service outside the city the taxpayer:

(1)

Did not maintain a dwelling in the city; and

(2)

Did maintain a dwelling outside the city due to military orders.

(c)

Exemption for combat zone pay and hostile fire/imminent danger pay. Notwithstanding the requirements under subsection (b) of this section, "earnings" shall not include any compensation received as a member of the Armed Forces of the United States and excluded from federal gross income under the Internal Revenue Code:

(1)

For active service in a combat zone, or

(2)

For hospitalization as a result of wounds, disease or injury incurred while serving in a combat zone, or

(3)

As hostile fire/imminent danger pay for serving in an area in direct support of military operations in a combat zone.

(d)

Military pay exemption for taxable years beginning after January 1, 2017. For taxable years beginning on or after January 1, 2017, the military service pay or allowance received by an active duty member of the Armed Forces of the United States or by a member of the National Guard or Reserves, including pay for drills and reserve training, shall be exempt from the earnings tax imposed by this article, whether such member is a resident or nonresident of the city.

(Code of Gen. Ords. 1967, § 32.144; Ord. No. 931336, 12-9-93; Ord. No. 000410, § 1, 4-13-00; Ord. No. 091074, § 1, 12-17-09; Ord. No. 170402 , § 1, 7-27-17)