To obtain a license, new businesses are required to file Form RD-105 no more than 60 days after opening in Kansas City, Missouri. A business license must be renewed each year by filing Form RD-105 prior to March 1. The cost of a license is determined by the amount of gross receipts from the prior calendar year using rate Table A included with the form.

Tips

• Gross receipts are the sales of products except for alcohol, cigarettes, gasoline, alcohol, lottery tickets, newspapers, magazines and tobacco related products. For more information on filing requirements for alcohol and tobacco sales, contact Regulated Industries. 

Resources

Code of Ordinances, Chapter 40, Article I

If the convenience store is preparing food on the premises and offering those items for sale, those sales are subject to the convention and tourism tax. Form RD-107 is a tax return that must be filed to report sales of food items prepared on the premises. Form RD-107 should be filed with the same frequency used for remitting state sales tax. The tax of 2% should be separately stated on a customer’s bill similar to sales tax. Remittances can be made electronically on Quick Tax or by using Form RD-137. 

Sales of prepackaged food that is prepared off-site and not regularly sold with prepared food items, along with other product sales should be reported on your business license, Form RD-105. 

Tips

• “Preparation” is an expansive definition and includes heating of food, mixing and combining two or more food ingredients or repackaging food into serving-sized portions.
   
• Heating of food by the customer does not make the item subject to tax unless other food items are prepared on the premises.
   
• Some items are not subject to tax regardless if they are “prepared” or not (if those are the only “prepared” items sold). These items can be found in section 1.551-3 (B)(5)(a) – (f) of the Convention & Tourism Tax Regulations (page 11). If you sell “prepared” food items that are not included in this list then both the other “prepared” items and those listed are subject to the tax.
   
• Prepackaged food or drinks regularly sold with prepared food items are subject to tax.
   
• Two percent (2%) of the tax due may be retained by the taxpayer if the tax is paid by the due date.

Resources

Code of Ordinances, Chapter 68, Article IX
Convention and Tourism Tax Regulations

Form RD-108/ 108B is a tax return filed annually and is used to pay the 1% earnings tax on the net profits of a business. The return is due by April 15 of each year and is required even if there is a loss. If you file income taxes on a fiscal year basis, the return is due 105 days from the end of your fiscal year.

Extensions of time to file may be requested by submitting Form RD-111. Extension requests are granted to provide an additional six months to file. They are not an extension of time to pay the tax due. A payment of at least 90% of the tax due must be submitted with Form RD-111 to avoid penalty and interest. This request is separate from an extension request submitted to the IRS for federal income tax purposes and should be sent directly to the Revenue Division. The IRS does not send this information to municipalities.

Resources

Code of Ordinances, Chapter 68, Article VI
Earnings and Profits Tax Regulations

Employers are required to deduct the earnings tax on wages and salaries paid to residents of Kansas City, Missouri and non-residents performing services within Kansas City, Missouri city limits.

In general, taxable earnings are gross compensation less contributions to cafeteria plans and qualified deferred compensation plans, similar to the amount used to calculate Box 1 of Form W-2 for federal income tax purposes. The withholding tax is to be remitted to the City at the same frequency used for state income tax withholding purposes. Remittances can be made electronically on Quick Tax or by using Form RD-130M or Form RD-130QM.

In addition to regular remittances, Form RD-110 is a return that is filed quarterly to report the taxable earnings paid for the quarter. The return is required even if there was no withholding during the quarter. Payments can be made with Form RD-110 for amounts not previously paid through prior remittances. Beginning January 1, 2021, Form RD-110 must be filed electronically. Employers can use Quick Tax or the Bulk Filing Program through a third party payroll provider. Failure to file electronically may result in filing penalties. 

After the end of each year, employers are also required to file a reconciliation of annual withholdings to payments remitted on Form RD-113. The return is due by January 31. W-2 information is also required to be submitted at the same time. W-2 information should only be provided for employees who had earnings tax withheld from their compensation. Beginning January 1, 2021, Form RD-113 must be filed electronically. This includes W-2 records. Employers can use Quick Tax or the Bulk Filing Program through a third party payroll provider.

Tips

• Remittance due dates are published annually.

• Employers that fail to submit Form RD-113 or W-2 records are subject to a penalty. The penalties mirror those charged by the Internal Revenue Service.

Resources

Code of Ordinances, Chapter 68, Article VI
Earnings and Profits Tax Regulations
Earnings Tax Magnetic Media and Electronic Filing Specifications

2024 Due Dates for Convenience Stores

January
15  Martin Luther King Jr. Day - City Offices closed 

31    Employer' Quarterly Return of Earnings Withheld (Form RD-110) -
          4th Quarter, previous year.
      Employer's Annual Reconciliation of Earnings Withheld
          (Form RD-113)/ previous year W-2 Information

        Convention & Tourism Tax (Form RD-107) - December/ 4th
         Quarter, previous year, monthly/ quarterly filers

February
19  Presidents Day - City Offices closed

29  Business License (Form RD-105)

       Convention & Tourism Tax (Forms RD-106, RD-107) - January,  monthly filers 

April

1      Convention & Tourism Tax (Form RD-107) - February,  monthly filers

15  Profits Earnings Tax (Form RD-108/ 108B) and Extension
       (Form RD-111), calendar filers

30  Employer's Quarterly Return of Earnings Withheld (Form RD-110) -0
         1st Quarter

      Convention & Tourism Tax (Forms RD-106, RD-107) - March, monthly/quarterly filers

May

27 Memorial Day - City Offices closed

31  Convention & Tourism Tax (Forms RD-106, RD-107) - April, monthly filers

June
19   Juneteenth (observed) - City Offices closed       

July
1    Convention & Tourism Tax (Forms RD-106, RD-107) - May/ 2nd Quarter, monthly/ quarterly filers

4  Independence Day - City Offices closed

31  Employer's Quarterly Return of Earnings Withheld (Form RD-110) -
        2nd Quarter)

       Convention & Tourism Tax (Forms RD-106, RD-107) - June, monthly filers

September

2   Labor Day - City Offices closed

3   Convention & Tourism Tax (Forms RD-106, RD-107) - July, monthly filers
 

30  Convention & Tourism Tax (Forms RD-106, RD-107) - August, monthly filers

October
31 Employer's Quarterly Return of Earnings Withheld (Form RD-110) -
        3rd Quarter

       Convention & Tourism Tax (Forms RD-106, RD-107) - September/ 3rd Quarter, monthly/ quarterly filers

November
11  Veterans Day - City Offices  closed
28 Thanksgiving Day - City Offices closed
29 Thanksgiving Holiday - City Offices closed

December

2   Convention & Tourism Tax (Forms RD-106, RD-107) - October, monthly filers
25  Christmas Day - City Offices closed
31  Convention & Tourism Tax (Forms RD-106, RD-107) - November, monthly filers