ORDINANCE NO. 031019

Enacting a new Section 68-446, Code of Ordinances, entitled Sales tax holiday exercise of local option to prevent the State imposed sales tax holiday of August 13, 2004 through August 15, 2004, from applying to the local portions of the sales taxes collected in the City, and directing the City Clerk to provide notice to the Missouri Department of Revenue, and to request a receipt acknowledging such notice.

WHEREAS, during the 2003 session of the Missouri General Assembly Senate Bill 11 was passed and subsequently approved by the Governor; and

WHEREAS, Senate Bill 11 establishes a sales tax holiday for the second weekend in August, 2004, by enacting a new Section 144.049.2, Revised Statutes of Missouri, that reads:

There is hereby specifically exempted from state sales tax law all retail sales of any article of clothing having a taxable value of one hundred dollars or less, all retail sales of school supplies not to exceed fifty dollars per purchase, all computer software with a taxable value of two hundred dollars or less, and all retail sales of personal computers or computer peripheral devices not to exceed two thousand dollars, during a three-day period beginning at 12:01 a.m. on the second Friday in August and ending at midnight on the Sunday following.

WHEREAS, Senate Bill 11 does not provide for the reimbursement to local governments of any lost municipal revenue as a result of the States action; and

WHEREAS, the State-imposed sales tax holiday will reduce local revenues in the approximate amount of $200,000.00 at a time when local governments are strapped by continued federal and state funding cuts, but are expected, often as institutions of last resort, to continue to provide to its citizens essential services, such as police and fire protection, public transit, parks, streets, sewers and other essential infrastructure needs, code enforcement, trash removal, public health protection, and a myriad of other services and programs; and

WHEREAS, the sales and use taxes collected by the City were approved by a vote of the people who expect the promised services, including those funded by two separate public safety sales taxes devoted to police, fire, and ambulance services; and

WHEREAS, the legislation expects local governments to consider the impact of the state-imposed sales tax holiday on local operations by providing for a means allowing local governments to exercise a local option to not participate in the sales tax holiday pursuant to the terms of a new Section 144.049.3, Revised Statutes of Missouri, that reads as follows:

Beginning on the effective date of this act, the governing body of any political subdivision may adopt an ordinance to prohibit the provisions of this section from exempting sales that occur within the political subdivision from being subject to the local sales taxes applicable to sales within the political subdivision. Upon adoption of such an ordinance, the governing body of the political subdivision shall provide written notice to the department of revenue of the substance of the ordinance. In the event such notification is not received by the department of revenue prior to the second Friday in July in any given year, the ordinance shall not go into effect prior to the year the notice is received.

NOW, THEREFORE

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That a new Section 68-446, Code of Ordinances, entitled Sales tax holiday exercise of local option is enacted to read as follows:

Sec. 68-446. Sales tax holiday - exercise of local option.

As permitted by Section 144.049.3, Revised Statutes of Missouri, the City prohibits the provisions of Section 144.049, Revised Statutes of Missouri, from exempting sales of certain clothing, personal computers, certain computer software, and school supplies that occur within the boundaries of the City during August 13, 2004 through August 15, 2004 from local sales and use taxes.

Section 2. The City Clerk is directed to deliver to the Department of Revenue of the State of Missouri, upon the effective date of this ordinance, a certified copy of this ordinance and a statement that the City has availed itself of the provisions of Section 144.049.3, Revised Statutes of Missouri, and prohibits the imposition of a sales tax holiday during August 13, 2004 through August 15, 2004. The City Clerk is further directed to request a receipt or other document from the department of revenue indicating notice was provided by the City prior to July 9, 2004.

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Approved as to form and legality:

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Assistant City Attorney