Kansas City voters to decide on adding local taxes for weed, short term rentals like Airbnbs
Kansas City residents are voting on multiple ballot questions in the April 4 election. Those ballot questions include whether or not to add an additional local tax to marijuana sales and whether or not to impose additional taxes and fees to short term rentals like Airbnbs.
There will be three ballot questions on the ballot for Kansas City residents. Other area municipalities and counties have added a marijuana tax question to the ballot as well.
All KC voters can vote early leading up to the election at three locations: Union Station, The Whole Person and United Believers Community Church.
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Here’s a breakdown of what Kansas City voters can expect to see on the ballot on April 4:
Marijuana Taxes
The first ballot question on April 4 will ask voters whether or not they agree with imposing an additional 3% sales tax to marijuana sales within the city. These kinds of taxes are known as excise taxes, similar to additional taxes put on alcohol and gas sales.
The additional 3% tax would be in addition to the existing 10.85% sales tax, which includes city, county and state sales taxes, and the additional 6% statewide weed tax. There’s also a chance Jackson County voters approve a countywide 3% excise tax on top of the city one.
So if the ballot question is approved, a regular consumer shopping in the Jackson County portions of Kansas City could see up to 23% in marijuana sales taxes.
The money would go through the city’s health department and would be put toward city clean-up efforts, homelessness prevention and violence prevention.
Kansas City Mayor Quinton Lucas and city officials hope that the additional 3% tax would lead to an average of $3 million in revenue in the first year and $10 million by the fifth year of taxing the recreational drug.
Other jurisdictions like Jackson and Cass countiesy will also be able to add their own 3% tax to marijuana sales, if voters approve. Depending on where you live, you might be asked to vote on both Kansas City’s marijuana excise tax, and a county level marijuana excise tax.
Here’s the exact question voters can expect on the ballot:
Kansas City
Question 1:
Additional Sales Tax on Retail Sale of Adult Use Non-Medicinal Marijuana
Shall the City of Kansas City impose an additional sales tax of three percent (3%) on the retail sale of adult use non-medicinal marijuana for the exclusive purpose of providing neighborhood quality of life improvements, to fund through the Department of Health, refuse and neighborhood cleanup services, homeless prevention services, and violence prevention services administered by the City?
Jackson County
Shall Jackson County, Missouri, be authorized to impose a countywide sales tax of three percent (3%) on all tangible personal property retail sales of adult use, non-medicinal marijuana sold in Jackson County, for the purpose of funding community services and veterans support services through a dedicated special revenue fund, and for other purposes authorized for the expenditure of county general revenues?
Cass County
Shall Cass County, Missouri impose a countywide sales tax of three percent (3%) on all tangible personal property retail sales of adult-use marijuana sold in Cass County, Missouri?
Platte and Clay counties do not have a marijuana tax question on the ballot for the April 4 election.
Short term rentals
The two following ballot questions are about short term rentals in Kansas City. One question will ask voters whether or not the city should impose a 7.5% tax, called a Transient Boarding and Accommodation Tax. This tax will be applied to short term rentals and any other lodging establishments that are not covered by the city’s 7.5% convention and tourism tax.
The second question will ask voters whether or not the city should add a $3 fee onto each sleeping room rented out, per day. This would apply to short term rentals, like Airbnb and Vrbo, as well as hotels and motels.
Since 2018, more than 4,000 short term rentals have been listed in Kansas City on third party sites. In recent years, community members have raised questions about the benefits of the industry, which led to a city audit that explored where the city was missing out on money to be made from short term rentals.
The audit found that between July 2021 and August 2022, the city missed out on more than $2.28 million in potential tourism tax revenue from short term rentals. The city missed out another $353,600 in occupancy fees during that same time period.
The city does have a 7.5% convention and tourism tax that is already applied to hotel rooms, but the city does not collect this tax on Airbnbs and other short term rentals, because state law defines hotels as establishments that have eight or more rooms for guests.
In order to change the definition of a hotel to include short term rentals, the city would have to lobby state legislators to change the requirements for the convention and tourism tax.
In the meantime, the city is asking voters to approve a 7.5% Transient Boarding and Accommodation Tax that would apply to Airbnbs and other kinds of lodging establishments. The city is also asking voters to approve the $3 license fee that will apply to both hotels and short term rentals.
Here’s what voters can expect to see on their ballot:
Question 2:
Transient Boarding and Accommodation Tax
Shall the City of Kansas City impose a Transient Boarding and Accommodation Tax of
seven and one-half percent (7.5%) to all lodging establishments, including short-term
rentals, not otherwise subject to the City’s Convention and Tourism Tax?
Question 3:
Shall the City be authorized to impose the following license fee for the
purpose of funding convention and tourism activities:
Up to an additional $1.50 per occupied sleeping room per day on all hotels, motels and tourist courts, with such fees being in addition to the existing $1.50 occupancy fee on hotels and motels for a combined fee of $3.00 per occupied sleeping room per day also to be applied to all short-term rentals conducting business within the City?
You can check out the sample ballot here.
