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