Local News Spotlight

KC to seek voter approval to tax nonprofit conventions

Other cities in Missouri have nonprofit hotel guests pay convention tax. KC voters may decide next spring.

Updated: 2012-12-20T05:12:07Z

By LYNN HORSLEY

The Kansas City Star

Unlike every other city in Missouri, Kansas City exempts nonprofit conventions from paying the city’s convention tax, costing the city millions of dollars each year.

But that would change under a proposal the City Council hopes to put before voters in April.

The Council’s Finance and Governance Committee on Wednesday endorsed the ballot measure removing such exemptions, and it goes the full council for a vote Jan. 10.

City officials didn’t know exactly when or why nonprofit groups were first exempted from the convention tax, but said the exemption goes back at least to 1989.

Several years ago, when the city’s Convention and Visitors Association began analyzing the impact, it realized the exemption from the 7.5 percent hotel bed tax was costing the city more than $3 million per year, said association President Rick Hughes.

The association knew the city could use that money, and also knew nonprofit hotel guests pay the tax in St. Louis and Branson, as well as in neighboring cities in Kansas.

“It’s leveling the playing field,” City Councilwoman Jan Marcason said of the ballot measure.

City officials got the Missouri legislature’s permission this year to eliminate the exemption, with the permission of city voters. The next election would be April 2.

The exemptions to be eliminated would affect religious, charitable and education groups as well as nonprofit civic, social and service organizations. The exemption still would apply to people involved in federal government business.

The change would generate about $350,000 annually for the Neighborhood Tourist Development Fund; about $1 million for the Convention and Visitors Association to promote tourism; and $2 million for maintenance and operations of city convention and entertainment facilities.

To reach Lynn Horsley, call 816-226-2058 or send email to lhorsley@kcstar.com.

Deal Saver Subscribe today!

Comments

The Kansas City Star is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Kansas City Star uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here