On Tuesday, April 6, Kansas City, Missouri, voters will decide on the one percent 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.
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.
The earnings tax lasts for a period of five years. Voters previously approved it in 2011 and 2016. If the e-tax is rejected by voters, the city explained the tax will be phased out by 10 percent a year over a 10-year period.