eNewsletter December 14, 2011

From City Council . . . to the Business Council

Prepared by Rich Groves, Executive Director, North Kansas City Business Council

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Recent topics from City Hall as of December 14, 2011 . . .

A special City Council meeting was held last night (Tue, Dec 13) to discuss 3 topics. Two of those topics have significance for the business community.

• Additional discussion about tax increase option

• News about additional bus stops along Burlington

Tax Increase Options

Last week City Counselor Tom Barzee and City Finance Manager Shirley Land explained the ramifications of two types of possible tax increases the City Council had expressed interest in.

Additional information was provided last night about a possible Storm Water Control/Parks Sales Tax increase which could generate as much as $1,350,000 more income to be used for storm water and park projects. After learning more about how proceeds from this tax could be used and – compared with actual need – several City Council members expressed the view that this tax was not needed and voters should not be asked to vote on it.

The item that secured greater interest was a possible “Transient Guest Tax” (aka Hotel/Motel tax or Tourism tax). State statutes permit a tax of up to 5% on the revenue from hotel/motel room occupancy. Proceeds could be used for economic development or events that help promote business for North Kansas City. Proceeds could also be used for infrastructure improvement. It was estimated that each 1% would yield $114,000 in tax income. The full 5% would yield as much as $570,000 per year. Obviously, virtually all the tax burden would fall on out-of-town visitors using hotels/motels in North Kansas City.

No additional taxes can be invoked, however, without a vote of approval by North Kansas City voters.

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What is this?

This is the 10th in a series of e-newsletters that will bring to you, twice a month, any relevant news for the business community from the City Council meetings that I attend each week, as well as other happenings at City Hall.

Why do we do it?

This communication is intended to be an additional Benefit of Membership for members of the North Kansas City Business Council. If you know of other businesses who are NOT members – but who probably would benefit by being a member – please let them know this is one thing they are missing.

If you have good "leads" for prospective new members, please let me know. Call 472-7700 or e-mail richard@nkcbusinesscouncil.com.