KANSAS CITY, Mo. — On Tuesday, April 6, Kansas City, Missouri, voters will decide on the 1% city earnings tax.
The tax is paid by city residents, non-residents who work in the city and businesses located in the city.
According to the city, the tax is not an increase. Instead, it's a renewal on an individual's earned income, such as salaries, wages, commissions, tips and other compensation.
The money goes towards several items, such as trash pickup, filling potholes, paying first responders and other city services.
“Retaining the earnings tax is essential for us, this is not your normal tax issue election" explained Kansas City Mayor Quinton Lucas. "This is something that is core to city operations and has been core to city operations for years.”
According to the city, the earnings tax normally generates just over $292 million. However, the pandemic has resulted in a loss of revenue estimated at $23 million.
The city expects the earnings tax will bring in over $269 million for the new fiscal year set to begin May 1.
Mayor Lucas said if voters say no to the renewal, the city will have to make tough choices.
”We are stuck either substantially reducing expenditures to the tune of $300 million. That's more than the Kansas City Police Department and other city departments combined, or we increase taxes precipitously," he explained.
If the e-tax is rejected by voters, the city explained the tax will be phased out by 10% a year over a 10-year period.
The earnings tax lasts for a period of five years. Voters previously approved it in 2011 and 2016, according to the city.
More information on the e-tax can be found on the city's website.
