How Kansas City is paying for the Main Street streetcar expansion. Does it impact you?
The Main Street streetcar expansion, which will begin running through the heart of Kansas City in 2025, is projected to cost $351 million, about half of which will be paid for with a federal grant.
The rest will come from taxes generated by a Transportation Development District, where a special sales and property tax will be levied along the planned extension. Voters in the district approved the hike in 2018.
The new property assessment is similar to traditional ones, but it will also include usually tax-exempt institutions like churches, which will pay at a reduced rate. It also means the owner of a home valued at $200,000 will pay $266 more a year, officials have said.
What is the Transportation Development District?
Missouri Transportation Development Districts are a requirement for any Missouri municipality seeking essentially to generate revenue for transportation projects. They are special districts approved by voters.
Once formed, and approved by the circuit court, TDDs can, among other things:
Fund, promote, plan, design, construct, improve, maintain and operate one or more projects or assist in doing so and is a political subdivision of the state.
Levy special assessments, after qualified district voter approval.
Impose a sales tax not to exceed one percent (1%), after qualified district voter approval.
Collect tolls or fees on appropriate highways and roads, following qualified district voter approval.
Purchase land or receive contribution of land and cash for project right-of-way.
How is the Streetcar involved
In August 2017 voters approved the formation of the Main Street Rail TDD, which is a separate entity from the Kansas City Streetcar Authority and the city of Kansas City, Missouri.
In 2018, voters approved the local funding for the Main Street extension of the KC Streetcar to UMKC. That allowed the TDD board of directors to impose the TDD’s revenue sources, which will generate local funding to support the Main Street extension of the KC Streetcar — the 1% tax.
The TDD board of directors are Tammy Queen, Jan Marcason, Crissy Dastrup, Zac Sweets, David Johnson, Albert Ray and Ruben Alonso III.
Am I impacted by the tax and assessment?
The Main Street Rail TDD has a color-coded map to show what areas of the city along the current rail route and new extension will be impacted by the special tax and property assessment.
How much will I be impacted?
Voters approved a 1% sales tax for most purchases — food, restaurants, retail, etc. — within the TDD, that will stay in place for the next 25 years.
For individuals and even organizations with property within the defined district there’s a special assessment for property taxes. The TDD developed an assessment calculator for individuals to determine how much they will owe
Property values in Kansas City are reassessed every two years, so depending on changing values the special assessment may fluctuate through the 25-year period it’s in place.
