Big Revamp Needed To Kansas City Business License Tax

Anyone who has ever served in government knows how hard it is to get anything done. And once something is done, it’s just as hard to undo it. For years Kansas City business owners have railed against their business license fees. Some businesses are grandfathered in to a low flat rate. Others pay much more, based on grossed revenues. (Contact an attorney specializing in tax relief kansas city if you have any IRS attorney needs)

Lynn Horsley, reporting for the Kansas City Star, posted the story on August 6, 2012, under the headline, “Report urges fix in KC business license tax: It’s criticized as complicated and unfair, but the decades-old tax provides $21 million for the city.”

Horsley says the decades-old tax provides $21 million for the city and quoted political consultant Steve Glorioso as saying, “It’s inequitable, it’s arbitrary and it’s cumbersome for not only the city but for businesses. It is probably the most unpopular tax that Kansas City has.” Since 1996, task forces recommended reforming the tax several time, but nothing ever happened. This makes try number four.

A report by a citizens’s group has just been issued that advises that all businesses be charged by a percentage of gross revenue. Businesses without that generate small profits but use a Kansas City workforce, such as call centers, Horsley notes, would pay a percentage of gross payroll. Horsley quoted Commission Chairwoman Susan Stanton as saying, “It gets rid of the inequities that arise from the city ordinance. I think it’s worth giving the city council another way to address it.” She added, “I don’t think we would support reducing the tax burden on businesses,” Stanton said, “and shifting it to residents.”

Apparently this change would eliminate the old flat fees and make things more equitable, but it would surely necessitate some big businesses to pay more taxes. It won’t be easy.

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