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Legislation #: 180275 Introduction Date: 4/12/2018
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER REED
Title: Amending Section 68-449, Code of Ordinances, to impose conditions on the use of the Central City Economic Development Sales Tax Fund for debt retirement.

Legislation History
DateMinutesDescription
4/12/2018 Filed by the Clerk's office
4/12/2018 Referred to Finance and Governance Committee
4/18/2018 Advance and Do Pass, Debate
4/19/2018 Passed

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180275.pdf Authenticated 138K Authenticated
180275 Ordinance.pdf Other 47K Ordinance
180275 No Fact Sheet.doc Other 24K No Fact Sheet

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ORDINANCE NO. 180275

 

Amending Section 68-449, Code of Ordinances, to impose conditions on the use of the Central City Economic Development Sales Tax Fund for debt retirement.

 

WHEREAS, Ordinance No. 160861 put before the voters the question of enacting an economic development sales tax devoted to projects located within the area bounded by 9th Street on the north, Gregory Boulevard on the south, The Paseo on the west, and Indiana Avenue on the east; and

 

WHEREAS, in a Special Election called on April 4, 2017, the voters of the City of Kansas City, Missouri approved Question 4 allowing the City of Kansas City to impose a sales tax of 1/8 percent to be used for funding economic development projects within the above defined area; and

 

WHEREAS, the ballot language allowed for the possibility, but did not mandate, that the sales tax revenues be utilized for the retirement of debt under previously authorized bonded indebtedness or to repay bonds not yet issued; and

 

WHEREAS, Section 67.1305.14, RSMo, provides that the City Council is to have the final determination on the use and expenditure of the sales tax revenues; and

 

WHEREAS, the City Council believes that use of the sales tax revenues for the retirement of debt under previously authorized bonded indebtedness or to repay bonds not yet issued should be evaluated by the City Council so that such use does not negatively impact the available funding for improvements in the impacted area; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That Section 68-449, Code of Ordinances, is hereby amended by repealing Section 68-449 and enacting a new subsection, to read as follows:

 

Sec. 68-449. Imposition of tax (Central City Economic Development Sales Tax 2017)

 

(a)                Sales tax enacted. Pursuant to the authority granted by and subject to the provisions of section 67.1305, 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 sections 144.010 – 144.525 RSMo., and the rules and regulations of the director of revenue issued pursuant thereto. The rate of the tax shall be 1/8 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 section 144.010 – 144.525 RSMo. The tax shall become effective October 1, 2017, for a period of 10 years and shall apply to all sales made after September 30, 2017, and shall be collected as provided in section 67.1305, RSMo.

 

(b)               Use of sales tax - geographic limitations. The sales tax authorized pursuant to this section shall be used for projects located in the area bounded by 9th Street on the north; Gregory Boulevard on the south; The Paseo on the west; and Indiana Avenue on the east.

 

(c)                Economic development tax board. A five member economic development tax board shall be established with City representatives appointed by the Mayor and approved by the City Council pursuant to section 67.1305, RSMo. prior to the expenditure of any revenue received pursuant to this sales tax for the purpose of:

 

(1)               considering economic development plans, economic development projects, or designations of an economic development area;

 

(2)               holding public hearings and providing notice of any such hearings;

 

(3)               recommending to the City Council actions concerning the adoption of or amendment to economic development plans, economic development projects, or designations of an economic development area; and

 

(4)               performing other duties established by the City Council.

 

(d)               Exclusion of revenues. When imposed within a special taxing district this economic development sales tax shall be excluded from the calculation of revenues available to such districts, and no revenues from this sales tax shall be used for the purposes of any such special taxing district unless recommended by the economic development tax board and approved by the governing body imposing the tax. A special taxing district includes, but is not limited to a tax increment financing district, neighborhood improvement district, or community improvement district.

 

(e) Debt retirement. No revenues generated from the sales tax authorized pursuant to this section shall be expended for the retirement of debt under previously authorized bonded indebtedness or to repay bonds not yet issued unless such expenditures are expressly authorized by ordinance or resolution adopted by the City Council. The appropriation of funds to the Central City Economic Development Sales Tax Fund shall not be deemed sufficient for purposes of granting the authorization required herein.

 

__________________________________________________

 

Approved as to form and legality:

 

______________________________

Brian T. Rabineau

Assistant City Attorney