TOPEKA, Kansas — The Kansas Court of Appeals says a so-called “driveway tax” imposed by a Kansas City suburb is illegal under a state law limiting the taxing power of cities.
A three-judge appeals panel ruled Thursday. It rejected arguments from Mission that its levy is a transportation fee that doesn’t run afoul of limits on the power of cities to impose excise taxes. It’s based on how many vehicles come and go from a property.
Groups representing building owners and managers challenged the levy. The appellate panel said it’s a tax because almost every property owner must pay it to raise revenues for general road repairs.
The ruling can be appealed to the Kansas Supreme Court.
The city’s budget this year is $17.5 million and it expects the tax to raise $775,000.