Where Your KC Sales Tax Dollars Make a Difference
As Kansas Citians embark on their holiday shopping sprees, the National Retail Federation projects national holiday sales in 2025 to exceed an unprecedented $1 trillion. While this spending fuels festive cheer, it also generates significant sales tax revenue that often goes overlooked, especially right here in Kansas City, Missouri.
Understanding Kansas City’s Sales Tax Impact
Each year, shoppers in Kansas City, Missouri, contribute over $100 million in sales taxes. A vital, yet small, fraction of these funds is channeled into the Central City Economic Development (CCED) sales tax program, directly impacting our local communities.
The Central City Economic Development (CCED) Program in Action
The CCED program plays a crucial role in the revitalization of northeast Kansas City. Administered by Sherise Kirkwood, the program is dedicated to ensuring tax dollars are invested wisely into affordable housing development and essential community resources. Kirkwood emphasizes her role as a steward of these funds, highlighting the pride in seeing voter-approved initiatives contribute to rebuilding neighborhoods and fostering growth across Kansas City, particularly in traditionally underserved areas.
The program specifically targets developments that offer clear community benefits, ensuring that investments uplift areas that need it most. As Kirkwood notes, “We’re actually rebuilding our neighborhoods. We’re seeing growth throughout Kansas City.”
Projects Making a Tangible Difference
Since its inception in 2017, the CCED program has successfully funded 60 projects, with 12 already brought to completion. These initiatives span various critical areas, including the development of facilities like the KD Academy Early Learning Center.
One of the most recent and significant projects is the Prospect Summit Duplexes. This development will establish 24 much-needed affordable housing units for senior citizens on Prospect Avenue, located near East 22nd and East 23rd streets. The project secured $2.5 million in funding from the CCED sales tax program, often acting as “gap funding” to help developers kickstart vital community projects.
Dan Cranshaw, CCED Board Chair, articulates a powerful vision for the program’s future, aspiring for the east side of Kansas City to be as vibrant and desirable as any other part of the city. “I want the east side to be no different than Brookside, and that they can be places of destination for everyone in that area,” Cranshaw states, challenging traditional dividing lines within the city. To date, over $60 million has been reinvested into projects within the northeast corridor of Kansas City, Missouri.
The Power of Every Penny
The impact of these tax dollars resonates deeply with residents. Joe Crowell shared his perspective: “You’re closer to the church, the stores around it make it a lot easier for you. You’re more comfortable in your environment because you know you’re surrounded by people who are just like you.” This sentiment underscores how even small contributions from sales tax can make a significant difference in preventing residents from being priced out of their communities and fostering a sense of belonging.
What’s Next for CCED?
The Central City Economic Development sales tax program, established through a 1/8-cent sales tax approved by voters for a 10-year term, is slated to expire in 2027. Kansas City voters will face a crucial decision in the next election regarding its renewal, determining the future of these vital community investments.
CCED Program Snapshot
| Category | Details |
|---|---|
| Source of Funding | 1/8-cent sales tax from KCMO purchases |
| Annual KCMO Sales Tax Contribution | Over $100 million (total city sales tax) |
| Total Projects Funded (Since 2017) | 60 |
| Projects Completed | 12 |
| Total Investment in Northeast KCMO | Over $60 million |
| Program Expiration | 2027 (Voters to decide on renewal) |
Frequently Asked Questions About Your Sales Tax in KC
- What is the CCED sales tax program?
It’s a program in Kansas City, Missouri, funded by a specific 1/8-cent sales tax. Its purpose is to revitalize underserved areas, primarily through funding affordable housing and community development projects. - How much funding has the CCED program invested?
Since its start in 2017, the program has invested over $60 million into projects within the northeast corridor of Kansas City, Missouri. - What kind of projects does the CCED program support?
The program supports developments that offer tangible community benefits, such as the construction of affordable housing units for seniors (e.g., Prospect Summit Duplexes) and early learning centers (e.g., KD Academy). - When will Kansas City voters decide on the CCED program’s future?
The current 1/8-cent sales tax for the CCED program is set to expire in 2027. Kansas City voters will have the opportunity to vote on its renewal in an upcoming election before then. - How does my holiday shopping contribute to the CCED program?
A small portion of the sales tax collected on your purchases in Kansas City, Missouri, directly contributes to the CCED fund. This helps to finance local development projects and community rebuilding initiatives.
As you enjoy your holiday shopping this season, remember that your purchases in Kansas City contribute directly to vital community development efforts, helping to build a more equitable and vibrant future for all residents, especially in areas like the historic Northeast.
Your KC Sales Tax Funds City Revitalization
