Tax FAQs

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Business
Questions answered in this section include, “who is required to get a business license?” In addition, you can find filing requirements for partners and partnerships, as well as the procedure for closing a tax account.

Individual
Questions answered in this section include, “what is the earnings tax?” and “who has to file and/ or pay earnings tax?” It also lists the due date to file and pay. You can also find how to check the status of a refund.

Tax Professionals
This section lists ordinances relevant to the earnings tax and provides statute of limitations information.

Special Assessments
This section answers billing and payment questions related to Special Assessments issued for curb and sidewalk repair; sanitary sewer installation; nuisance abatement; demolition and board-up of dangerous buildings and Neighborhood Improvement Districts.

Tax - Individuals
- How do I file?
  Filing is easy! You can file online or complete forms and mail.
- When is my annual tax return due?
  Annual returns are due April 15 each year.
- Can I file and pay my taxes online?
  Yes, you can file and pay your taxes online through Quick Tax.
- What is the earnings tax?
  The earnings tax (sometimes referred to as “e-tax”) is a one percent tax on an individual’s earned income such as salaries, wages, commissions, tips and other compensation. It generates revenue that pays for a wide variety of basic City services used by all those who live and work in Kansas City, Missouri. In addition to helping fund basic City services such as repairing roads and weekly trash collection, the revenue from the earnings tax also pays for police officers, fire fighters, paramedics and ambulance services. Revenue from the earnings tax also helps fund snow removal, codes inspection, historic preservation and other City needs.
  
  The earnings tax is paid by any business or person who lives or works in Kansas City, Missouri.
- Who has to file and/or pay earnings tax?
  All Kansas City, Missouri residents are required to pay the earnings tax, even if they work outside of the city. Non-residents are required to pay the earnings tax on income earned within Kansas City, Missouri city limits.
- How do I know if I owe?
  Your employer should withhold the earnings tax if you work in Kansas City, Missouri. Your W-2 (or your paystubs) will reflect tax paid through payroll deductions. You do not need to file a return if the amount in Box 19 of your W-2 equals 1% of Box 1.
  
  Your employer may be willing to withhold the tax if you are a resident but do not work at a location, or perform services, in Kansas City, Missouri. Please check with your employer for more information.
  
  Companies can contact the Revenue Division at 816-513-1135 to set-up an account for withholding.
  
  If you received a bill for earnings taxes, please call the representative listed or 816-513-1120.
- What if my employer did not withhold for me?
  You must pay the earnings tax if the tax was not deducted from your paycheck and you live or work in Kansas City, Missouri. Please check your W-2 or paystubs to see if earnings tax was deducted. If you work at a location, or perform services, in Kansas City, Missouri, and your employer did not deduct earnings tax please call 816-513-1120.
- What do I need to know before I fill out my return?
  W-2s and any supporting documentation must accompany all returns. Non-resident taxpayers are required to obtain their employer’s signature when completing the RD-109NR, along with supporting documentation.
  
  You do NOT have to file a return, if you are fully withheld by your employer. Please check your W-2 or contact your employer.
- I am paying my earnings tax after the due date. Do I have to pay penalties or interest?
  Late payments are subject to a penalty of 5 percent per month (up to a maximum of 25 percent) plus interest at the rate of 12 percent per year from the due date. These rates apply to the following tax types imposed under the earnings tax: wages, profits and employer withholding of the earnings tax.
- How do I get on a payment plan?
  In many situations taxpayers can setup a monthly payment plan to payoff outstanding amounts due. Requests for payment plans can be submitted electronically through Quick Tax. Watch a short video on How to Request a Payment Plan on Quick Tax.
  
  For more information about payment plans, or to request a payment plan for longer than 6 months, email us or call (816) 513-1120.
- I am a resident of Kansas City, Missouri, but work outside of Kansas City, Missouri. Am I subject to the one percent earning tax on the monies I earn outside of Kansas City, Missouri?
  Yes, the monies earned by residents are subject to the City’s one percent earnings tax regardless of where they are earned unless exempted by state statute or municipal ordinance.
- I work part of a day in Kansas City, Missouri and part outside of Kansas City, Missouri. How do I treat this in calculating my days worked outside of the City?
  If any portion of a day is worked within Kansas City, Missouri, that day would not be considered a day worked outside of the City.
- Are there any exceptions to the standard work year of 260 days on Form RD-109NR?
  There are exceptions, including part-time employees, flex-time employees and partial-year residents. Documentation may be requested to verify the number of days worked if not using the standard 260 days.
- Is retirement income subject to the earnings tax?
  Income from qualified deferred compensation plans is not subject to the earnings tax. Common examples of qualified plans include 401(k), 403(b), 501(c)(3) or 457(b).
  
  Social security payments are not subject to the earnings tax.
- Is disability income subject to the earnings tax?
  Payments related to a permanent disability such as a disability pension or retirement are not subject to the earnings tax.
  
  Payments related to a temporary disability (either short-term or long-term) are subject to the earnings tax if the premiums for the benefit were paid entirely by the employer or by the employee before tax. If the premiums for the plan were paid entirely by the employee after tax, the disability payments are not subject to tax. If the premiums were paid partly by the employee with after tax monies and partly by the employer the payments are taxable based on the ratio of the amount paid by the employee to the total premium amount paid. See page 22 of the Earnings and Profits Tax Regulations for more information.
- Is unemployment compensation subject to the earnings tax?
  Unemployment benefit payments are not subject to the earnings tax.
- I am an active duty member of the military. Do I owe earnings taxes?
  For tax years beginning January 1, 2016 and earlier, your military service pay is subject to the earnings tax if you were a resident of Kansas City, Mo. and claimed Missouri as your Home of Record.
  
  For tax years beginning January 1, 2017 and after, your military service pay is exempt from the earnings tax regardless of your resident status or Home of Record.
  
  Combat zone and hostile fire/ imminent danger pay are not subject to the earnings tax regardless of tax year, resident status or Home of Record.
- What if I receive a severance package? How is it taxed by the City?
  Severance pay is a form of compensation and is considered earnings subject to the earnings tax. If a nonresident receives severance pay from Kansas City employment and requests a refund for days worked outside the City, the City will generally use the average percentage of days a taxpayer worked outside the City for the previous five years to determine the refundable amount.
- I received nonqualified stock options. Do I owe earnings taxes?
  Nonqualified stock options are subject to the one percent earnings tax. The amount subject to tax is based on two factors:
  - Residency status
  - Percentage of days worked inside Kansas City, Missouri
  The two factors are applied from the grant date to the exercise date to determine the amount subject to the earning tax. Residents of Kansas City, Missouri are taxed on all earned income. Non-residents are taxed on the portion of time worked inside of Kansas City, Missouri during the tax year.
  
  Example: A taxpayer is granted nonqualified stock options of $150,000 in tax year 2016. The options are exercised in tax year 2021. The taxpayer was a resident in tax years 2016 through 2018. During tax years 2019 through 2021 the taxpayer worked 75% of the time outside of Kansas City, Missouri.
  
  $93,750 of the stock options are subject to the earnings tax. The taxpayer was a resident for three of the six years. Therefore, 50% of the options are taxed based on residency ($150,000 X 0.50% = $75,000). The remaining $75,000 is taxed based on the portion of days worked inside of Kansas City, Missouri ($75,000 X 0.25% = $18,750). Resulting in a total taxable amount of $93,750 (or $75,000 + 18,750).
  
  For more info on the treatment of stock options , go to the Earnings and Profits Tax Regulations.
- How do I get a refund?
  Beginning tax year 2022, all requests for Wage earner and Profits tax refunds must be filed by the 15^th day of the 4^th month after the end of its tax year. If the due date falls on a Saturday, Sunday or legal holiday, the return will be due on the next business day. If a valid extension request is submitted to the City of Kansas City, Missouri, a taxpayer will have six additional months to file a return.
- What’s the status of my refund?
  To check the status of your refund, go to Quick Tax and click on “Check Refund Status.” You may also call Taxpayer Services at (816) 513-1120.
- How do I change my address?
  Please complete a taxpayer information form and submit via email or by mail to the address on the top of the form. Address change requests may also be submitted online using Quick Tax.
- What if I still have questions?
  Send an email with your tax questions and requests. We will respond within 2-3 business days.
  
  Visit Our Office
  
  City Hall, 2nd floor
  414 E. 12th St.
  Kansas City, MO 64106
  Phone: (816) 513-1120
  Email: revenue@kcmo.org
  
  Office Hours
  
  Monday - Friday (except holidays): 8:00 AM - 5:00 PM
- Why do I have a 1% fee added to my Google Fiber bill?
  In March 2022, Google Fiber discontinued its television service to subscribers.
  
  As a Video Service Provider, Google Fiber was required by State Statute (RSMo 67.2689) and City Code (Section 19-82) to collect from customers a five percent (5%) franchise fee on gross receipts derived from the sale of video service and then remit the proceeds of the fee to the City.
  
  This 5% fee was not disclosed on customer bills as a separate line item.
  
  With the discontinuation of television service, Google Fiber no longer collects and remits the franchise fee. However, Google Fiber continues to provide internet service to Kansas City households and as such, uses the City’s right of way to provide that service. Maintaining the City’s right of way is costly, and the utility franchise fee is a method for the City to cover the costs of right of way maintenance.
  
  A license agreement with Google Fiber was approved by the City Council via Ordinance No. 220370. This ordinance stipulates that Google Fiber will collect a 1% fee on the gross receipts derived from the provision of internet service and will remit that fee quarterly to the City. This fee is designed to replace the revenue from the discontinued television service.
  
  For greater transparency, the 1% fee is now disclosed on the customer’s bill as a separate line item.
  
  The City will use this revenue to aid in maintenance of the City’s public right of way.