Half of Kansas City's general fund is up for vote
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Kansas Citians on Tuesday will be asked if they want to renew the city's 1% earned income tax on residents, businesses and workers.
Why it matters: The earnings tax generates almost half of KCMO's $844.2 million general fund, but state law requires the tax to be put to a vote every five years.
Context: This is not a new tax. The city voted in 1963 to establish a 0.5% earnings tax, which was upped to 1% in 1970 and has remained ever since.
- Voters approved extending the tax by a 77-78% majority in 2011, 2016 and 2021.
- A 2021 state law says new earnings taxes can't be imposed, so getting rid of it means it's gone for good.
Zoom in: The city's general fund makes up a majority of the police budget, along with significant funding for the fire department, roadwork, snow removal and trash collection.
- 46% of the earnings tax comes from nonresidents, meaning folks who commute into KCMO pay for a large share of the city's infrastructure and services.
What they're saying: Mayor Quinton Lucas, most council members and a large coalition of local organizations are urging residents to vote yes.
- The Greater KC Chamber of Commerce also "strongly supports renewing the earnings tax," stating it's vital for the successful operations of local businesses.
The other side: 1st District Councilmember Nathan Willett has said he will vote no. He did not respond to Axios' questions as to why.
- Opponents say the tax discourages population growth, and the flat rate disproportionately affects low-income families.
- Missouri Republicans in 2023 recommended phasing out the earnings tax, while raising other taxes to match the loss in revenue.
Reality check: KC finance officials say the city would have to double its sales tax or quadruple its property tax rates to make up for the earnings tax, The Beacon reported.
If you go: The polls are open Tuesday 6am–7pm.
- Check your voting location online.