How Your Kansas City Sales Tax Boosts Local Neighborhoods

As the holiday shopping season ramps up, it’s easy to focus on gifts and deals, often overlooking the small portion of your purchase that goes towards sales tax. In Kansas City, Missouri, these often-unnoticed pennies play a significant role, funneling millions back into the community through vital development programs. This year, with national holiday sales projected to surpass $1 trillion for the first time, understanding where your KCMO sales tax goes is more important than ever.

The Power of Your Pennies: Understanding KCMO Sales Tax

Kansas City, Missouri, residents collectively contribute over $100 million in sales taxes annually. While this sum supports various city services, a small, dedicated fraction helps drive transformative change in specific areas. This particular portion funds the Central City Economic Development (CCED) sales tax program, a key initiative for urban revitalization.

Central City Economic Development (CCED) Program: A Closer Look

What is the CCED Program?

The Central City Economic Development sales tax program is designed to bring much-needed tax dollars into the revitalization of Kansas City’s historic Northeast neighborhood and other traditionally underserved and under-resourced areas. Sherise Kirkwood, the CCED program administrator, emphasizes her role as a steward for these funds, ensuring they build the community back up. The program’s core philosophy is to support developments that offer a direct community benefit, fostering growth where it’s needed most.

Tangible Impact: Projects Making a Difference

Since its launch in 2017, the CCED program has been instrumental in funding 60 projects, with 12 already completed and contributing to the city’s landscape. Notable achievements include supporting initiatives like the KD Academy Early Learning Center, providing crucial resources for families. The program’s most recent endeavor, the Prospect Summit Duplexes, stands as a testament to its mission, aiming to provide 24 affordable housing units for senior citizens along Prospect Avenue. This project alone is slated to receive $2.5 million in funding from the sales tax program, often serving as critical gap funding to get developments off the ground. In total, over $60 million has been invested back into projects within the northeast corridor of Kansas City, Missouri.

Here’s a snapshot of the CCED program’s impact:

Envisioning a United Kansas City

Dan Cranshaw, CCED Board Chair, articulates an ambitious goal for the program: to ensure that the east side of Kansas City becomes as much a destination as areas like Brookside. He hopes that traditional dividing lines, such as Troost or Prospect avenues, will cease to be seen as barriers, but rather as integral parts of a unified Kansas City. For residents like Joe Crowell, these investments mean more than just new buildings; they mean being “more comfortable in your environment because you know you’re surrounded by people who are just like you,” ensuring neighbors aren’t priced out of their long-standing communities.

What’s Next for the CCED Program?

The Central City Economic Development sales tax program, funded by a 1/8-cent sales tax that Kansas City voters approved for a decade, is set to expire in 2027. This means that in an upcoming election, Kansas City voters will have the critical opportunity to decide whether to renew the program, ensuring its continued impact on neighborhood revitalization and affordable housing initiatives.

• What is the Central City Economic Development (CCED) Sales Tax Program?
  It’s a program funded by a small portion of Kansas City, Missouri’s sales tax, aimed at revitalizing traditionally underserved areas, particularly in the historic Northeast neighborhood.
• What kind of projects does the CCED program support?
  The program primarily funds developments that offer a community benefit, such as affordable housing (like the Prospect Summit Duplexes for seniors) and early learning centers (like the KD Academy).
• How much has the program invested in Kansas City’s northeast corridor?
  Since its inception in 2017, the CCED program has directed over $60 million into projects within the northeast corridor of Kansas City, Missouri.
• When is the CCED sales tax program set to expire?
  The program, funded by a 1/8-cent sales tax approved for 10 years, is scheduled to expire in 2027. Kansas City voters will have the opportunity to decide on its renewal in an upcoming election.

As you check off your holiday shopping list, remember that your purchases contribute to more than just the economy. In Kansas City, a small part of your sales tax is actively rebuilding and empowering local neighborhoods, making a tangible difference in the lives of fellow residents. Stay informed about local initiatives and be prepared to make your voice heard when the opportunity to renew this impactful program arises.

Kansas City Sales Tax Boosts Local Neighborhoods