RESOLUTION NO. 250288
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Sponsor: Councilmember Melissa Robinson
RESOLUTION - Directing the City Manager to review the revenue received by the City of Kansas City from local use taxes and report back to the City Council in 30 days; and further directing City Manager to prepare a comprehensive proposal regarding how the City could redistribute local use tax revenue in proportion with each sales tax imposed by the City without a destabilizing impact to City services and report back to the City Council within 120 days.
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WHEREAS, state law authorizes the City to impose a local use tax at a rate equal to the rate of local sales tax in effect in the City; and
WHEREAS, through Ordinance No. 960658 in 1996, the City submitted the question to the qualified voters of whether to impose a local use tax at the same rate as the total local sales tax, and further adopted a local use tax equivalent to the rate of the total local sales tax contingent upon voter approval; and
WHEREAS, the qualified voters of the City did approve such local use tax in an election held on August 6, 1996; and
WHEREAS, through its decision of Wayfair v. South Dakota in 2018, the United States Supreme Court generally ruled that sellers of online goods and services need not have a physical presence in a state in order for that state to require the seller to collect and remit sales and use taxes; and
WHEREAS, as of January 1, 2023, the State of Missouri requires those engaging in business activities within the state with cumulative gross receipts of at least $100,000.00 per year to collect and remit state and local use taxes; and
WHEREAS, the City Council desires to review the revenue generated by local use taxes in order to make informed decisions about the distribution of such funds for necessary programs and services within the City; NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the City Manager is hereby directed to review the amount of revenue received by the City from all local use taxes and report back to the City Council within 30 days. In their report, the City Manager shall include the following details:
• A separate description of each use tax imposed by the City
• A detailed distribution of use tax revenue as laid out in the adopted budget
Section 2. That the City Manager shall prepare a comprehensive proposal regarding how the City could redistribute local use tax revenue in proportion with each sales tax imposed by the City without a destabilizing impact to City services and shall present this proposal to the City Council within 120 days.
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