Kansas City May Be Removed From E-tax Abolition Bill

Kansas City may dodge the bullet on the earnings tax at the Missouri Legislature.

Two sources say a substitute bill takes Kansas City out of the legislation
Earlier this month,
State Senator Kurt Schaefer proposed eliminating the Kansas City and St Louis earning tax.

The money from the 1% tax on income generated inside the city
represents about 40% of Kansas City’s general fund.

It’s about a third of the St. Louis operating budget.

Sen. Schaefer says he did not think the earnings tax could stand up to a court challenge after a recent US Supreme Court ruling on a similar Baltimore, Md. tax.

At a hearing earlier this month about 30 Kansas City testified against the Schaefer bill.

The substitute bill is expected to be offered in the Senate Ways & Means Committee Thursday.