HB 1488 -- KANSAS CITY TRANSPORTATION SALES TAX

CO-SPONSORS:  Skaggs, Van Zandt, Wilson (42), Boucher, Sanders
Brooks, Mays (50), Curls

COMMITTEE ACTION:  Voted "do pass" by the Committee on Urban
Affairs by a vote of 8 to 3.

Current law states that a sales tax of up to 0.5% may be imposed
on tangible personal property or taxable retail services in
Kansas City.  Of the revenues received from this sales tax, 7.5%
must be distributed to the Interstate Transportation Authority.
The remaining 92.5% is deposited into the Public Mass
Transportation Sales Tax Trust Fund.  This provision will expire
on December 31, 2003.

This bill removes the expiration date, allowing the tax to remain
in effect indefinitely.

FISCAL NOTE:  Estimated Net Income to General Revenue Fund of $0
in FY 2003, $139,366 in FY 2004, and $281,519 in FY 2005.

PROPONENTS:  Supporters say that the bill streamlines the process
by eliminating the requirement for Kansas City to ask the
legislature to allow it to renew its transportation sales tax
every two years.  The bill would allow the transportation sales
tax to remain in effect indefinitely.  Supporters say that this
sales tax is essential to continuing public transportation in
Kansas City and is key to the Kansas City Transportation
Authority's long-term financial planning.

Testifying for the bill were Representative Skaggs; Kansas City
Area Transportation Authority; Greater Kansas City Chamber of
Commerce; and City of Kansas City.

OPPONENTS:  There was no opposition voiced to the committee.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:01 am