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Kansas City Council To Talk A Lot About The Earnings Tax Between Now And April

Updated January 7, 2016

A Kansas City Council committee took a first step Wednesday to preserve the one percent earnings tax that supporters say pays for vital city services.

In what will likely be the first of many presentations about the earnings tax, finance director Randy Landes told the Council’s finance and governance committee there have been many bills prefiled to modify or eliminate the earnings tax, which brings in more than $200 million annually.

“This particular tax is under siege currently in this legislative session,” Landes said.

In 2014, Missouri voters approved a statewide ballot initiative that would require cities with earnings taxes – currently, only Kansas City and St. Louis – to seek a reauthorization every five years.

If voters do not approve the renewal, the tax would phase out over a ten year period.

“If they say no, the statute now says you will never, ever, as long as the universe spins, have another earnings tax,” city attorney Bill Geary told the committee.

Kansas City will likely have to raise other taxes to make up the deficit if voters reject the earnings tax. It could mean cuts to fire and police. Landes told the committee it’s possible Missouri’s Hancock Amendment would limit the city’s ability to make up lost revenue by hiking sales or property taxes.

The full city council approved the ordinance on Thursday, scheduling the earnings tax renewal election for April 5.

Elle Moxley is a reporter for KCUR. You can reach her on Twitter @ellemoxley.

Elle Moxley covered education for KCUR.
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