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Kansas City Local Tax Earns Its Way

Van Osdol and Magruder News May 10, 2016

Amid considerable controversy, the citizens of Kansas City, Missouri, overwhelmingly approved a local tax which draws revenue not just from citizens of the city, but also from the salaries of everyone who works in Kansas City, wherever they may live.

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The last time the matter was put to a vote in 2011, the tax was ratified by 78 percent of voters; this time, it was 77 percent in favor of extending the tax another five years. It may be the principal way that residents of nearby Johnson and Wyandotte Counties and other non-residents help underwrite the larger community-wide services situated in KCMO, such as the Kauffman Center for the Performing Arts, Union Station, Sprint Center, Kauffman and Arrowhead Stadiums, the Kansas City Zoo, KCI Airport, The Nelson Atkins Art Gallery,public parks and countless other amenities available to the entire metro area.

 
Over the last five years, the Earnings Tax has been responsible for as much as 40 percent of the city budget. With hits to local revenue sources such as property tax suffering from TIF abatement, the city was desperate for the income, part of which is dedicated to enhancing economic growth for the community. Kansas City should be proud to claim support from its citizenry to sustain many of its finer features, avoiding the fiscal shortfalls causing controversy across the state line.

Tags: Earnings Tax, Midwest, missouri law, Tax Law

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