TKC EXCLUSIVE!!! PUSH BACK AND QUESTIONS FOR UPCOMING KANSAS CITY BUDGET AND EARNINGS TAX MEETINGS!!!

We don't want to back track too much on this Kansas City ass Wednesday but it's important to round up information as we move forward.

Remember that we've blogged upcoming local meetings for the Earnings Tax and budget hearings on the way as well . . .

To wit . . .

CHECK THIS QUESTION GUIDE FOR UPCOMING KANSAS CITY MONEY TALK!!!

Citizens For Responsible Government sent out these important inquiries that also provide more than a bit of background information given that these public talking sessions are usually packed with consultants and other "activists" fighting for funds that are mostly directed toward development projects.

Take a look:

E-TAX Meeting and KCMO Budget Hearings

If KCMO is going to take advantage in April, of the opportunity to disband the regressive Earnings-Tax, which preys on the poorest members of our city, the budget will need to be adjusted. When the E-tax is voted down, the City will have ten years to adjust so the planing should start now.

The first meeting noted is a presentation on the Earnings-Tax.. The Mayor will speak and we should have the opportunity to ask questions. He will tell us how when the e-tax fails, he will have to cut basic services. Instead of developing a plan to replace the dollars over a ten year period, we will hear doom and gloom. This alone shows a lack of leadership. City government should be looking for ways to cut taxes not proliferate them.

Earnings Tax questions:

The Earnings Tax is $230,000,000 per year. That is 15% of the total $1,475,000,000 taken in by the City annually. We will hear it is 40% of the general fund and it is but it is 15% of total collections.

Why is a portion of the E-tax, $20,000,000 last year, which is supposed to be used for basic services used for economic development in the EAT? This money goes to developers.

It is very suspicious that individuals pay 81% of the KCMO Earnings tax or $185,000,000; while businesses pay 19% or $43,400,000. Which leads us to the next question. This just doesn’t add up, there must be some waivers.

Who in Kansas City has their Earnings Tax payments waived? Businesses as well as individuals? Defeating the tax would negate those waivers. Loophole closed.

Maybe a re-figuring of property tax assessments for some of the downtown buildings could generate more property tax dollars to help offset the lack of an earnings tax. The Kansas City Star printing plant comes to mind; built 11 years ago at a cost of $220,000,000 it’s on the books at $22,000,000. Valued at $42,000,000 in 2014 it is now valued at $22,000,000. That’s nearly a 50% drop in one year and saved the Star about $700,000 in property tax this year alone. Plus they were granted a 15 year extension on their property tax abatement which equates to about $34,000,000 over the next 15 years. Cancelling these sweetheart deals and reassessing some properties receiving them will go a long way toward replacing earnings tax dollars.

Budget Hearings Questions:

Why do we have so many (64) different funds drawing from the general fund in the city? Can’t some of these be combined for cost savings. Surely there are some duplications.

Why do we have five or six different commissions, agencies, etc. handing out property tax abatements, tax deferrals, TIF’s, and other mechanisms to allow businesses to avoid paying taxes and have access to taxpayer funds. Shouldn’t some of these be combined so only one City agency can disperse freebies? Wouldn’t that give us a lot more control? Shouldn’t the mayor be out of this process?

Last budget year KCMO planned to spend $77,500,000 (of which $$20,000,000 came from the Earnings Tax) on economic development. This Economic Activity Tax has tripled the last ten years. Maybe this could be cut back some?

How does KCRTA acquire land? I would think all of the various City agencies collecting money would remit any excesses to the city to defer expenses. If an agency needs land, the City would procure it. How many different agencies which are part of City Government own land?

Please attend if you can. This is our money and our City, we should have a say.
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Developing . . .