Capital Improvements Sales Tax Renewal FAQ
On Tuesday, April 3, 2018, Kansas City voters will be asked to consider extending the 1¢ capital improvements sales tax for 20 more years. Voters will see this ballot language at their polling place:
SHALL THE FOLLOWING BE APPROVED?
Shall the City of Kansas City, Missouri reauthorize the existing 1% sales tax authorized by Section 94.510 of the Revised Statutes of Missouri for a period of 20 years to expire on December 31, 2038; continue to fund a capital improvements program for public needs including, but not limited to streets, bridges, curbs, sidewalks, flood control, parks, and public buildings; dedicate in this program 35% of the available annual sales tax receipts for neighborhood conservation, maintenance and improvements to be divided equally among council districts based on the recommendations of the Public Improvements Advisory Committee (“PIAC”) and the final decision of the City Council; dedicate in this program , with review and comment by PIAC, at least 25% of the available annual sales tax receipts for street resurfacing, repair, and construction of complete street facilities and the remainder for other capital improvements, including the City’s share of the costs for the replacement of the Buck O’Neil Bridge?
_____ Yes _____ No
Download and print a flyer of this FAQ.
Q: What is included in this renewal of the 1¢ sales tax?
A: The sales tax will be allocated to the following three categories:
- 35% for neighborhood projects through the Public Improvements Advisory Committee (PIAC) process;
- 25% for street re-surfacing, repair and constructions of complete streets, including making them more accessible for pedestrians and bicycles; and
- 40% for maintenance of existing infrastructure, includes $5 million per year that may be used to replace the Buck O’Neil Bridge (formerly known as the Broadway Bridge).
Q: Why would the City have to help replace the Buck O’Neil bridge?
A: More than 44,000 cars utilize the Buck O’Neil Bridge each day to access downtown. Without funding from the City, the Mid-America Regional Council and other local municipalities, the state would only make repairs. These repairs would take two years and the bridge would still need to be replaced later, which would cost more money and take longer to complete.
Q: Will there be any money guaranteed for neighborhood needs?
A: Yes. At least 35% of the tax will continue to fund neighborhood requested projects. Each council district will continue to receive an equal amount of funds for neighborhood projects.
Q: What is PIAC?
A: The Public Improvements Advisory Committee, commonly known as PIAC, is a group of 13 residents appointed by the Mayor and members of the City Council. PIAC holds public hearings where proposals for neighborhood projects are presented. Following its series of hearings, PIAC considers the proposals and makes recommendations to the City Council on how its portion of the sales tax money should be spent.
Q: How much money is set aside for PIAC?
A: 35% of the sales tax revenue is set aside for the PIAC process, which is the same percentage the last time the tax was renewed. This money is divided equally among the six city council districts. It is estimated that next year that funding will be roughly $4 million per year, per council district.
Q: When was the tax last renewed?
A: The capital improvement sales tax was last renewed in 2007 as a 10-year tax. This ballot question would renew the tax for a 20-year period to align with the recently passed GO KC bonds program.
Q: If we just passed the GO Bonds for infrastructure, why do we need this sales tax also?
A: In simple terms, the GO bonds will be used to build or re-build infrastructure. Part of the capital improvements sales tax will be used to maintain those projects, and moving this renewal to a 20-year cycle aligns these two programs.
Q: If the ballot initiative passes, will sales taxes go up?
A: No. This is a renewal of an existing tax, so it does not add to the current sales tax.
Q: Are the City’s rules for the use of local minority-owned and women-owned businesses applicable to the projects the sales tax will fund?
A: Yes. The City Council included in the ordinance the following commitment: “The City’s MBE/WBE and construction workforce policies will be followed in the use of all capital appropriations.”
Q: What type of majority is required to pass the sales tax?
A: A simple majority is required to pass the sales tax.