KANSAS CITY, Mo. (March 30, 2016) – The board of directors of the Economic Development Corporation of Kansas City, Missouri, unanimously endorsed at its regularly scheduled board meeting on Friday, March 25, 2016, a resolution in support of the one percent earnings and profits tax renewal. The renewal is on the April 5, 2016, special election ballot.
The resolution points out that the earnings and profits tax is a continuation of a tax in place for more than 50 years and is the City’s single biggest source of revenue – nearly 40 percent – that is essential to providing citizens and businesses with excellent City services and quality of life.
The resolution reads in full:
RESOLUTION OF THE ECONOMIC DEVELOPMENT CORPORATION
BOARD OF DIRECTORS IN SUPPORT OF RENEWAL OF THE
CITY OF KANSAS CITY, MISSOURI EARNINGS AND PROFITS TAX
WHEREAS the City of Kansas City, Missouri’s earnings and profits tax is the City’s single biggest revenue source; and
WHEREAS the City of Kansas City, Missouri desires to provide its citizens and businesses with excellent City services; and
WHEREAS the City of Kansas City, Missouri has relied on the one percent earnings and profits tax since the 1960s and that it provides nearly 40 percent of the City’s general fund revenue, paying for police, fire, trash removal and other city services; and
WHEREAS during the City’s current fiscal year the one percent earnings and profits tax generates approximately $230 million a year; and
WHEREAS the upcoming vote to extend the City’s earnings and profits tax for an additional five years will be on the ballot on April 5, 2016, and without the vote to renew, the earnings tax will be phased out over ten years; and
WHEREAS the renewal of the earnings and profits tax is not a tax increase, but rather a continuation of an existing tax that has been in place for over fifty years and has been instrumental in supporting the excellent quality of life of Kansas City; and
WHEREAS the elimination of the earnings and profits tax could result in the loss of 800 uniformed police officers, 550 firefighters and hundreds of other city employees; and
NOW THEREFORE BE IT RESOLVED that the Board of Directors of the Economic Development Corporation of Kansas City, Missouri strongly supports the renewal of the one percent earnings and profits tax which will appear on the special election ballot of April 5, 2016.
ADOPTED this 25th day of March, 2016.
Bridgette Williams, EDC Chair
Jill S. Quinn, Secretary
More information about Earnings Tax may be found on the City of Kansas City, Missouri’s website: http://kcmo.gov/tax/etax/