ORDINANCE NO. 260610
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Sponsor: Committee of Petitioners
Enacting a new Section 68.475, continuing a 3/8 % city bus sales tax for an additional period of 40-years (upon its expiration in 2033) and enacting a new 1/4 cent capital improvement sales tax for 40-years (beginning 1/1/2026) for the purpose of benefiting the City under the guidance of the City Council, pursuant to Sections 94.600 through 94.655 RSMo., providing for the submission of this ordinance to the qualified voters of the city for their approval at the next election date that may be provided by law, authorizing the City Clerk to notify the responsible election authorities of this election; authorizing and directing the City Clerk to notify the Missouri Director of Revenue if the proposal is approved by voters, and recognizing this ordinance to be an emergency measure.
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WHEREAS, Sections 94.600 through 94.655, Revised Statutes of Missouri (RSMo.) authorize a sales tax for transportation purposes of up to 1 /2% and which the proposed ordinance does not exceed; and
WHEREAS, Section 94.575 through 94.577, RSMO. authorize a sales tax for capital improvements for up to 1/2%, and the City currently uses 50% of that authorization for police and safety purposes, leaving a 1/4-cent sales tax available for other capital improvement uses; and
WHEREAS, no sales tax ordinance shall be effective until it is submitted to the qualified voters of Kansas City and approved by a majority of the qualified voters voting; and
WHEREAS, voters approved (in 2023) extending (for 10-years) a 3/8-cent sales tax for the City's bus system; and
WHEREAS, a committee of petitioners has submitted an initiative petition seeking to enact an ordinance that would continue an existing sales tax and enact a new sales tax for the purpose of constructing, operating, and maintaining certain capital improvements as more fully described in this ordinance; and
WHEREAS, the City Clerk certified that the petition contains sufficient signatures to engage the City Charter process; and
WHEREAS, the City Clerk made no finding or certification on any other issue concerning the petition or the legislation proposed in the petition; and
WHEREAS, Section 702 of the City Charter provides that if a petition is found to contain sufficient signatures, the City Clerk “shall certify and submit the ordinance set forth therein to the Council at its next meeting;” and
WHEREAS, this ordinance proposed by a committee of petitioners is hereby submitted to the City Council by the City Clerk pursuant to Section 702 of the City Charter; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. Continuation of tax and imposition of new tax. That Chapter 68, Code of Ordinances entitled "Taxation" is amended by enacting a new Section 68.476, to read as follows:
Sec. 68.476. Sales taxes for Airport Monorail & Additional Capital Improvements.
(a) Continuation of existing tax. Pursuant to the authority granted by and subject to the provisions of section 94.600 through section 94.655,RSMo., a tax for the purpose of developing, operating and maintaining infrastructure, transportation & capital improvements, under the guidance of the City Council, is hereby continued upon all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable services at retail to the extent and in the manner provided in section 144.010 through section 144.525, RSMo., and the rules and regulations of the Director of Revenue thereto. The rate of the sales tax shall be 3/8% on the receipts from the sale at retail or all tangible personal property or taxable services at retail within the city, if such property and such services are subject to taxation by the state under the provisions of section 144.010 through section 144.525, RSM... The tax shall become effective in 2033 and shall apply to all sales made until 2073 (a period of 40-years) and shall be collected as provided in section 94.600 through 94.655, RSMo.
(b) Imposition of new tax. Pursuant to the authority granted by and subject to the provisions of section 94.575 through section 94.577, RSMo., a tax for the benefit of the city is hereby imposed upon all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable services at retail to the extent and in the manner provided in section 144.010 through section 144.525 RSMo., and the rules and regulations of the Director of Revenue issued pursuant thereto. The rate of the new tax shall be 1/4-percent on the receipts from the sale at retail of all tangible personal property or taxable services at retail within the city, if such property and such services are subject to taxation by the state under the provisions of sections 144.010 through section 144.525, RSMo. The tax shall become effective 1/1/26 and collected for a period of 40-years, unless sooner terminated, and shall be collected as provided in section 94.575 through 94.577, RSMo.
(c) The City shall use the tax proceeds for the implementation and on-going operation and maintenance of the following capital improvements:
(1) Construct (Citywide) Monorail System serving Kansas City International Airport, Northland, Downtown, Union Station, Plaza, Eastside & KC Zoo... & promote construction of affordable housing & mixed-use development along corridor & establish fleet of mini-electric shuttle buses to expand service area around Monorail Stations to nearby neighborhoods, destinations & job centers; and extend a Streetcar line east to 18th & Vine;
(2) Reconfigure (Select) roadways (including Troost Ave. & W. 39th St.) into Pedestrian-Friendly Greenways with limited, no-thru traffic & dedicated lanes for... pedestrians, cyclists/ scooterists & electric buses... & promote affordable housing units along (landscaped, tree-lined) Greenways;
(3) Upgrade Penn Valley Park into a safe & natural Downtown Park (no vehicular traffic inside Park) including 200-acres of new trees, open green space and recreational trails;
(4) Incorporate into Union Station's North Wing a Regional Transportation Hub (requires razing bldgs. @ 2300 & 2301 Main St. via eminent domain) to facilitate connections between alternative forms of transportation streetcars, electric-buses, metro-express buses, Amtrak & the KCI Airport Monorail?
Section 2. Reaffirmation of MBE/WBE and workforce policies. These policies will be followed in the use of all capital appropriations.
Section 3. This ordinance, to impose a tax for infrastructure, transportation & capital improvements, shall be submitted to the qualified voters of the city for their consideration, as required by section 94.577 and section 94.605, RSMo.
Section 4. Nothing herein shall be construed to instruct or compel the City of Kansas City to expend funds in excess of revenues generated hereby. In the event revenue generated hereby is insufficient to complete all improvements and routes the City is directed to complete as much as feasible with priority being given to connections with existing or previously planned public transportation routes.
Section 5. The City Manager is hereby authorized and directed to take all steps necessary and incidental to the completion of the express purpose of this Ordinance including, but not limited to developing detailed plans, negotiating necessary right of ways, issuing revenue bonds and entering into necessary contracts. The City Manager, furthermore, is expressly authorized to apply for federal matching transit and infrastructure improvement funds.
Section 6 The Ballot shall read: Shall the City of Kansas City Missouri extend the 3/8-cent bus sales tax for an additional 40-years (upon its expiration in 2033) & impose a new ¼-cent capital improvement sales tax for 40-years (beginning 2026) in order to secure federal funds & Provide for the following capital improvements: 1. Construct (Citywide Monorail System serving…Kansas city International Airport, Northland, Downtown, Union Station, Plaza Eastside & KC Zoo…& promote construction of affordable housing & mixed-use development along corridor & establish fleet of mini-electric shuffle buses to expand service area around Monorail Stations to nearby neighborhoods, destinations & job centers; and extend a Streetcar line east to 18th & Vine; 2. Reconfigure (Select) roadways (including Troost Ave. & W. 39th St.) into Pedestrian-Friendly Greenways with limited, no-thru traffic & dedicated lanes for…pedestrians, cyclists/scooterists & electric buses…& promote affordable housing units along (landscaped, tree-lined) Greenways; 3. Upgrade Penn Valley Park into a safe & natural Downtown Park (no vehicular traffic inside Park) including 200-acres of new trees, open green space and recreational trails; 4. Incorporate into Union Station’s North Wing a Regional Transportation Hub (requires razing bldgs @ 2300-2301 Main St. via eminent domain) to facilitate connections between alternative forms of transportation…streetcars, electric-buses, metro-express buses, Amtrak & the KCI Airport Monorail?
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Approved as to form:
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Sarah Baxter
Senior Associate City Attorney