ORDINANCE NO. 091074
Amending Chapter 68, Article VI,
Code of Ordinances, entitled Earnings and Profits Tax, to exempt combat zone
pay of members of the Armed Forces from the earnings tax.
WHEREAS, men and
women of Kansas City, Missouri who are members of the Armed Forces of the
United States are now serving their country in combat zones in Iraq,
Afghanistan and other parts of the world; and
WHEREAS, the
Armed Forces may in the future be engaged in these or other combat zones as
existing wars continue or new conflicts arise; and
WHEREAS, the
demands of serving in a combat zone make it difficult for service members to
file tax returns and make tax payments; and
WHEREAS, Section
92.260 of the Missouri Revised Statutes authorizes the City Council to provide
for deductions, exemptions and credits from the earnings tax; and
WHEREAS, the
City wishes to exempt the military pay of citizens serving in combat zones from
the earnings tax and to extend the deadlines for filing returns and paying tax;
NOW, THEREFORE,
BE IT ORDAINED
BY THE COUNCIL OF KANSAS CITY:
Section 1. That
Chapter 68, Article VI, Code of Ordinances, is hereby amended by repealing
Section 68-385, Exemptions, and enacting in its place a new Section 68-385 of
the same title and subject matter, to read as follows:
Sec. 68-385. Exemptions.
(a) The
income referred to in section 92.220, RSMo, as exempt from the earnings and
profits tax of the city, shall not be taxable under this article.
(b) Active
duty pay exemption. The term "earnings" shall not include any
compensation earned in the performance of active duty in the military service
of the United States outside the city provided that during the time the
taxpayer earned the compensation from active duty military service outside the
city the taxpayer:
(1) Did
not maintain a dwelling in the city; and
(2) Did
maintain a dwelling outside the city due to military orders.
(c) Exemption
for combat zone pay and hostile fire/imminent danger pay. Notwithstanding
the requirements under subsection (b) of this section, “earnings” shall not
include any compensation received as a member of the Armed Forces of the United
States and excluded from federal gross income under the Internal Revenue Code:
(1) For
active service in a combat zone, or
(2) For hospitalization as a result of wounds, disease or injury
incurred while serving in a combat zone, or
(3) As hostile fire/imminent danger pay for serving in an area in
direct support of military operations in a combat zone
Section 2. That
Chapter 68, Article VI, Code of Ordinances, is hereby amended by adding a new
Section 68-403, titled Extension of deadlines for combat zone service, to read
as follows:
Section 68-403. Extension of
deadlines for combat zone service.
(a) For any
taxpayer actively serving as a member of the Armed Forces of the United States
in a combat zone, contingency operation, or hospitalized as the result of
wounds, disease or injury incurred while serving in a combat zone or contingency
operation, the due date for filing any return, paying any tax due or filing any
claim for refund under this article shall be automatically extended for 180
days after the later of:
(1) The
last day of service in the combat zone or contingency operation, or
(2) The last day of continuous hospitalization for wounds,
disease or injury incurred while serving in the combat zone or contingency
operation.
(b) As used in
this section, the term “combat zone” means any area which the President of the
United States by Executive Order designates as an area in which Armed Forces of
the United States are or have engaged in combat. Service is performed in a
combat zone only if performed on or after the date designated by the President
by Executive Order as the date of the commencing of combat activities in such
zone, and on or before the date designated by the President by Executive Order
as the date of the termination of combat activities in such zone.
(c) As used in
this section, the term “contingency operation” is a military operation that is
designated by the Secretary of Defense or results in calling members of the
uniformed service, or retains them on active duty, during a war or a national
emergency as declared by the President or Congress.
Section 3. Effective
Date: The amendments under this ordinance shall apply to tax periods beginning
on or after January 1, 2009.
____________________________________________
Approved as to form and legality:
________________________________
Stephen Walsh
Assistant City Attorney