EARNINGS AND PROFITS TAX

Kansas City Code ch. 68, art. VI

in effect

Kansas City Code § 68-381 Definitions.

Sec. 68-381. - Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Business means any enterprise, activity, profession, trade or undertaking of any nature, that generates gross receipts. City means the City of Kansas City, Missouri, as defined by City Charter. Commissioner of revenue means the delegate of the director of finance charged with the administration of the revenue division, a division of the finance department. Corporation means a legal entity recognized as a corporation and organized under the laws of any state or territory of the United States or any foreign country. Day worked in the city means any day or the portion thereof in which the taxpayer renders or performs services in the city. Days worked. Days worked will be 260 days unless otherwise defined in the regulations adopted pursuant to this article. Director means the director of finance of the city, or the director's delegate, the commissioner of revenue. Earnings means compensation paid for personal services, whether denominated as wages, salary, commission, bonus or otherwise, whether paid or payable, in cash or in property. Employee means any individual who works for earnings in the service of an employer. Any person for whom an employer is required to withhold for either federal income tax or social security tax or on whose account payments are made under the state Unemployment Compensation Act shall be deemed to be an employee. Employer. Any person required to withhold for either federal income tax or social security tax or make payments under the state Unemployment Compensation Act shall be deemed to be an employer, whether or not such employer is engaged in business. Employer within the city means any employer who maintains an office, branch or other place of business within the city. Fiscal year means an accounting period of 12 months ending on any day other than December 31. Last known address means: (1) The address given in the taxpayer's last city tax return filed, unless after the filing of such return the taxpayer shall have notified the commissioner of revenue of a change of address; or, (2) A mailing address for the taxpayer provided by the United States Postal Service to the commissioner, including information from the United States Postal Service National Change of Address database; whichever address shall have been provided later to the commissioner of revenue. Net profits. Net profits shall be determined by deducting the necessary expenses of operation from the gross profits or earnings. Partnership means any entity recognized as a partnership and organized under the laws of any state or territory of the United States or any foreign country. Pass-through entity means any entity for which the state allows taxable income to pass through to the owners including but not limited to partnerships, certain limited liability companies, or other entities recognized as pass-through entities by the state except that the term pass-through entity does not include any corporation. Person means every natural person, business or other entity. Whenever the term "person" is used in any clause prescribing and imposing a penalty, the term as applied to businesses or other entities shall mean the partners, members, owners or officers thereof. Resident means any individual, business or other entity residing or domiciled within the city. Taxable year means the calendar year or the fiscal year used as the basis on which net earned profit is to be computed. The taxpayer shall use the same fiscal year for the purposes of the taxes imposed by this article as the taxpayer uses for state and federal income tax purposes. Taxpayer means any person subject to tax, or required to withhold tax, under this article. (Code of Gen. Ords. 1967, § 32.140; Ord. No. 931138, 10-14-93; Ord. No. 931336, 12-9-93; Ord. No. 991585, § 1, 12-16-99; Ord. No. 130044, § 12, 1-31-13; Ord. No. 170402, § 1, 7-27-17)

Kansas City Code § 68-382 Imposition of tax.

Sec. 68-382. - Imposition of tax. (a) Rate; scope. A tax for general revenue purposes of 1.0 percent per year is hereby imposed on: (1) All earnings of resident individuals of the city. (2) All earnings of nonresident individuals for services performed or rendered in the city. (3) Net profits of all unincorporated businesses conducted by residents. (4) Net profits of all unincorporated businesses earned as a result of work done or services performed or rendered or business or other activities conducted in the city by nonresidents. (5) Net profits of all corporations earned as a result of work done or services performed or rendered or business or other activities conducted in the city. (b) Partnerships and other pass-through entities. (1) Partnerships and other pass-through entities shall not be taxed as entities. Any member thereof who is a resident of the city shall be taxed individually on his or her entire distributive share of the annual profits thereof, and any nonresident member shall be taxed individually only on that portion of his or her distributive share of the annual profits thereof which is derived by the pass-through entity from work done, services performed or rendered, or business or other activities conducted in the city. (2) All pass-through entities shall be required to file an informational return for each tax year in a form prescribed by the director. (3) In lieu of the informational return, pass-through entities may elect to file a combined return and pay the tax due on behalf of the partners, members or owners. This return must reflect the tax liability of each partner, member, or owner individually, and be in a form prescribed by the director. (c) Basis. Such tax shall be levied, collected and paid on the basis of the calendar year; provided, however, that where the fiscal year of any taxpayer differs from the calendar year the tax may be computed on the fiscal year basis. (Code of Gen. Ords. 1967, § 32.141; Ord. No. 931336, 12-9-93)

Kansas City Code § 68-383 Allocation of earnings of nonresident individuals.

Sec. 68-383. - Allocation of earnings of nonresident individuals. The earnings subject to tax of any nonresident individual in any case in which the work is done or the services performed or rendered both within and outside the city shall be ascertained as follows: (1) Working days. If the amount of such earnings depends primarily upon the amount of time devoted by such individual, then the portion of such earnings subject to tax shall be that portion of such earnings which the total number of days worked within the city bears to the total number of days worked within and outside the city. (2) Other methods. If it is impracticable to apportion such earnings as put forth in subsection (a) of this section or if such apportionment does not result in a clear reflection of city earnings, other methods of allocation, as defined in the regulations adopted pursuant to this article, may be used. However, the final determination of the proper allocation method to be used by a taxpayer may be made by the director. (Code of Gen. Ords. 1967, § 32.142; Ord. No. 931336, 12-9-93)

Kansas City Code § 68-384 Allocation of net profits of business.

Sec. 68-384. - Allocation of net profits of business. (a) The net profits subject to tax of any business conducted in whole or in part by nonresidents of the city in any case in which the work done, services performed or rendered, and business or other activities conducted are done, performed, rendered or conducted both within and outside the city, shall be determined by: (1) Formula method. The portion of the entire net profits of such taxpayer subject to tax shall be determined by multiplying the entire net profits by an allocation percentage which shall be determined as follows: a. Property factor. The property factor shall be a fraction, the numerator of which is equal to the original cost of such taxpayer's real and tangible personal property, including leasehold improvements, owned and used or rented and used in the business and situated within the city during the period covered by the return, and the denominator of which is the original cost of all its real and tangible personal property, including leasehold improvements, owned and used or rented and used in the business wherever situated during such period covered by the return. The original cost shall be determined in accordance with an accounting method allowable for federal income tax purposes. If the denominator of this factor is zero, the factor shall not be considered as part of the allocation percentage. b. Payroll factor. The payroll factor shall be a fraction, the numerator of which is equal to the value of the earnings during the period covered by the return of the taxpayer's employees within the city, and the denominator of which is equal to the total earnings during such period of all such taxpayer's employees within and outside the city. If the denominator of this factor is zero, the factor shall not be considered as part of the allocation percentage. c. Gross receipts factor. The gross receipts factor shall be a fraction, the numerator of which is equal to the gross receipts of such taxpayer derived from business within the city during the period covered by its return, and the denominator of which is equal to the total of such gross receipts wherever derived. Gross receipts derived from the business within the city shall be the amount of gross receipts from: 1. Rental or royalties. Taxable rentals or royalties from property situated or from use of patents within the city. 2. Sales. i. Sales of tangible personal property are in the city if: (a) The property is delivered or shipped to a purchaser, other than the United States government, within this city, regardless of the f.o.b. point or other conditions of the sale; or (b) The property is shipped from an office, store, warehouse, factory or other place of storage in the city and the purchaser is the United States government. ii. Sales, other than sales of tangible personal property, are in the city if: (a) The income-producing activity is performed in the city; or (b) The income-producing activity is performed both in and outside the city and a greater proportion of the income-producing activity is performed in the city than outside the city, based on costs of performance. If the denominator of this factor is zero, the factor shall not be considered as part of the allocation percentage. d. Allocation percentage. The allocation percentage is equal to the sum of the percentages determined in accordance with subsections (a)(1)a, b and c of this section divided by the number of factors used in obtaining the sum of the factors. (2) Other methods. If any taxpayer believes that the method of allocation set forth in subsection (a)(1) of this section is inapplicable or inequitable due to special circumstances, the taxpayer may file with the director a statement of his objections and of such alternative method of allocation or apportionment as would be proper under the circumstances and in such manner and with such detail and proof and within such time as the director may reasonably prescribe. (b) If the director shall conclude that the methods of allocation or apportionment provided in subsection (a) of this section are in fact inapplicable or inequitable, the director shall determine the profits subject to tax by such other method of allocation or apportionment as seems best calculated to assign to the city for taxation the portion of the profits attributable to work done, services performed or rendered, and business or other activities conducted in the city, not exceeding, however, the amount which would be arrived at by the application of the methods of allocation or apportionment set forth in subsection (a) of this section. (Code of Gen. Ords. 1967, § 32.143; Ord. No. 931336, 12-9-93)

Kansas City Code § 68-385 Exemptions.

Sec. 68-385. - Exemptions. (a) The income referred to in section RSMo § 92.130, as exempt from the earnings and profits tax of the city, shall not be taxable under this article. (b) Active duty pay exemption. The term "earnings" shall not include any compensation earned in the performance of active duty in the military service of the United States outside the city provided that during the time the taxpayer earned the compensation from active duty military service outside the city the taxpayer: (1) Did not maintain a dwelling in the city; and (2) Did maintain a dwelling outside the city due to military orders. (c) Exemption for combat zone pay and hostile fire/imminent danger pay. Notwithstanding the requirements under subsection (b) of this section, "earnings" shall not include any compensation received as a member of the Armed Forces of the United States and excluded from federal gross income under the Internal Revenue Code: (1) For active service in a combat zone, or (2) For hospitalization as a result of wounds, disease or injury incurred while serving in a combat zone, or (3) As hostile fire/imminent danger pay for serving in an area in direct support of military operations in a combat zone. (d) Military pay exemption for taxable years beginning after January 1, 2017. For taxable years beginning on or after January 1, 2017, the military service pay or allowance received by an active duty member of the Armed Forces of the United States or by a member of the National Guard or Reserves, including pay for drills and reserve training, shall be exempt from the earnings tax imposed by this article, whether such member is a resident or nonresident of the city. (Code of Gen. Ords. 1967, § 32.144; Ord. No. 931336, 12-9-93; Ord. No. 000410, § 1, 4-13-00; Ord. No. 091074, § 1, 12-17-09; Ord. No. 170402, § 1, 7-27-17)

Kansas City Code § 68-386 Collection at source; withholdings.

Sec. 68-386. - Collection at source; withholdings. Each employer maintaining an office or transacting any business within this city and making payment of any earnings taxable under this article to a resident or nonresident individual shall deduct and withhold from such earnings for each payroll period of such individual one percent of such earnings as earnings tax. The employer shall remit the amount of earnings tax withheld to the director in the manner prescribed in this article. (1) Exempted employees. No employer shall be required to withhold the tax due on any earnings paid to employees for whom the employer is not required to withhold social security tax under the Federal Insurance Contributions Act. (2) Nonresident employers. Any nonresident employer making payment of any earnings taxable under this article to a resident or nonresident who performs services partly or wholly within the city, shall be subject to the provisions of this article. Further any nonresident employer will subject itself to the provisions of this article if it willingly withholds or opens a withholding account with the city for tax due under this article from residents of the city. (3) Employer as trustee. Each employer, in collecting the tax, shall be deemed to hold the withheld tax until payment is remitted to the city as trustee for the city. (4) Accounting to director; returns. a. Quarterly returns. On or before the last day of the month following the end of each calendar quarter, each employer shall make a return to the director setting forth the compensation received and earnings tax withheld from employees. All returns shall be in a form prescribed by the director and shall be subject to the rules and regulations prescribed therefor by the director. For calendar quarters beginning on or after January 1, 2013 each employer subject to this section paying earnings taxable under this article to 250 of more employees in that calendar quarter shall file such quarterly return electronically through the Internet in the manner prescribed by the Commissioner of Revenue. b. Annual returns. Each employer shall make to the director a return for the preceding calendar year. All returns shall be in a form prescribed by the director and shall be subject to the rules and regulations prescribed therefor by the director and shall be accompanied by employee records containing the employer ID number ("EIN"), the employee's name, Social Security Number, city and state of residence, total wages earned, wages subject to the city earnings tax and earnings tax withheld. To satisfy this requirement, the employer may file the W-2 information provided to the federal and state authorities for such year that includes this information. No part of this provision shall be construed to require any taxpayer to furnish the director with a copy of his federal or state income tax return. For annual returns for calendar years 2013 and later, each employer subject to this section paying earnings taxable under this article to 250 or more employees in one or more calendar quarters during the year shall file such annual returns and accompanying employee records electronically through the Internet in the manner prescribed by the Commissioner of Revenue. 1. Due dates for annual returns. For annual returns for calendar years before 2017, employers shall make this return on or before the last day of February, or the next succeeding day which is not a Saturday, Sunday, or city holiday. For annual returns for calendar years 2017 and all succeeding years, employers shall make this return on or before the last day of January, or the next succeeding day which is not a Saturday, Sunday, or city holiday. c. Fees for noncompliance (Years 2012 and earlier). 1. Late fees. To encourage the prompt and complete filing of returns, whenever any return, as required by this section, has remained unfiled or incompletely filed after the due date fixed for filing, a fee of one percent of the annual amount withheld by the employer, up to a maximum of $1,000.00, shall be imposed. 2. Improper format. An employer who fails to file this return in the format prescribed by the director will be in violation of this section and will be assessed a fee per employee record not filed in accordance with this section. This fee will defray the city's costs of converting this information into the proper format and will be determined annually by the director. 3. The fees under this subsection shall apply to returns for tax periods ending on or before December 31, 2012. d. Penalties for noncompliance with filing requirements (Years 2013 and later). To encourage the prompt and complete filing of withholding returns, whenever any return, as required by this section, has after the due date, not been filed, not been filed with all required information or employee records, not been filed with correct information, or not been filed in the required format or by the required method or medium, including electronic filing, the following penalties shall be assessed: 1. If a correct return is filed within 30 days after the due date, the penalty assessed is $30.00 for each employee for whom the employer was required to withhold under this section, but the total penalties imposed for all such failures during any calendar year shall not exceed $75,000.00. 2. If a correct return is filed more than 30 days after the due date but within 150 days after the due date, the penalty assessed is $60.00 for each employee for whom the employer was required to withhold, but the total penalties imposed for all such failures during any calendar year shall not exceed $200,000.00. 3. If a correct return is not filed within 150 days after the due date, the penalty assessed is $100.00 for each employee for whom the employer was required to withhold, but the total penalties for all such failures during any calendar year shall not exceed $500,000.00. 4. The penalties under this subjection shall apply to returns for tax periods commencing after December 31, 2012. e. Exceptions to penalty. The following are exceptions to the penalties for noncompliance with filing requirements in subsections c and d. 1. The penalty will not apply to any failure that was due to reasonable cause. This requires a showing that the failure was due to an event beyond the taxpayer's control or due to significant mitigating factors. 2. An inconsequential error or omission is not considered a failure to include correct information. (5) Accounting to employees. Every such employer shall furnish each employee on or before the last day of January, or the next succeeding day which is not a Saturday, Sunday, or city holiday, of each year with the pertinent information as described in subsection (4) of this section for the preceding calendar year. (6) Remittance of earnings tax withheld. From and after January 1, 1994, any employer who deducts and withholds the city earnings taxes from employees' earnings shall remit to the director or the director's agent all earnings taxes withheld from each payroll by the same due date prescribed by the state for the remittance of income tax withheld on the payroll, with the exception of employers who remit income tax withheld to the state on an annual basis. Those employers must remit earnings tax withheld for each calendar quarter to the director or his agent by the last day of the month following the end of the quarter. (7) Change in remittance schedule. An employer may petition the director, by the method prescribed in the rules and regulations, to change the frequency with which the employer remits earnings tax withheld under the following circumstances: a. The employer is not domiciled in the city and withholds tax on a voluntary basis. The director is authorized to enter into agreements with such employers to allow them to remit earnings tax withheld according to the schedule for income tax withheld of the state in which the employer is domiciled. b. The employer has a city payroll schedule significantly different from the payroll schedule of its other operations, and the city payroll is significantly smaller than the payroll of its other operations. (8) Final return required. Any entity that ceases business and owes tax under this article must make a final return to the director. This return shall be subject to the provisions of this article. (9) Effect of failure to withhold or remit. a. The failure of any employer to withhold the earnings tax when required to do so by this section or to remit the amount of tax withheld to the director or his agent in a timely manner shall subject the employer to liability for the amount of the tax that should have been withheld or should have been remitted and any penalties and interest with respect thereto. b. Additionally, the failure of any employer to deduct or withhold at the source the amount of tax due from the employee shall not relieve the employee from the duty of making a return. (Code of Gen. Ords. 1967, § 32.146; Ord. No. 931138, 10-14-93; Ord. No. 931336, 12-9-93; Ord. No. 031277, § 1, 11-25-03; Ord. No. 120514, § 1, 6-21-12; Ord. No. 170402, § 1, 7-27-17)

Kansas City Code § 68-387 Returns by taxpayers.

Sec. 68-387. - Returns by taxpayers. (a) Except as provided in this section, each individual or business whose earnings or profits are subject to the tax imposed by this article shall make and file a return with the director by the fifteenth day of the fourth month following the taxable year. The return shall be made in a form prescribed by the director and showing the amount of tax due and owing and such other pertinent information as the director may require. (b) Any business or individual may request an extension of time to file by submitting a written request for an extension in a form prescribed by the director. (c) All requests for extensions of time to file must be submitted by the fifteenth day of the fourth month following the end of the taxable year and must be accompanied by a payment of at least 90 percent of the estimated tax balance due. The underpayment of tax liability with an extension request will subject the taxpayer to the interest and penalties set forth in this section. (d) After delinquency, extensions of time to pay shall not be granted except for exceptional mitigating circumstances for the cause of the delinquency and demonstrated proof of financial ability to repay the delinquency. If the taxpayer meets such criteria, the commissioner, in his or her discretion, may permit the taxpayer to enter into a payment agreement, in a form prescribed by the commissioner, to pay the tax, along with interest and penalties, in installments for a period not to exceed six months. Failure to make any installment payment due under the agreement shall cause the entire balance due to become payable immediately, and subject to recovery and collection as provided in this article. (e) Notwithstanding the foregoing, the city council may, by ordinance, change the dates for the filing and payment deadlines enumerated in subsections (a) and (c) of this section. (Code of Gen. Ords. 1967, § 32.149; Ord. No. 931336, 12-9-93; Ord. No. 120012, § 3, 1-19-12; Ord. No. 200691, § 1, 9-17-20; Ord. No. 210265, § 1, 3-25-21)

Kansas City Code § 68-388 Payment of tax to accompany return.

Sec. 68-388. - Payment of tax to accompany return. Each taxpayer making a return shall at the time of the filing thereof pay to the commissioner the amount of tax shown as due thereon. For any prior payments made or tax withheld at source, credit shall be taken on the return and the balance, if any, shall be submitted at the time of the filing of the return. If an extension of time to file is granted, any tax deemed to be due and owing will be deemed to be due on the original due date. The return shall be in a form as prescribed by the commissioner. (Code of Gen. Ords. 1967, § 32.150; Ord. No. 931336, 12-9-93; Ord. No. 200691, § 1, 9-17-20)

Kansas City Code § 68-389 Returns not required of certain taxpayers.

Sec. 68-389. - Returns not required of certain taxpayers. (a) No return shall be required of: (1) Any individual taxpayer who has received only earnings from which the entire tax has been withheld at the source as provided in this article. (2) Any individual taxpayer who has no taxable earnings and does not seek a refund of any money withheld but not owing. (b) All businesses shall file regardless of taxable income. (Code of Gen. Ords. 1967, § 32.151; Ord. No. 931336, 12-9-93)

Kansas City Code § 68-390 Limitations.

Sec. 68-390. - Limitations. No assessments shall be made: (1) Of any tax found to be due after five years from the due date of the return. (2) For any tax that the amount due and owing is less than $1.00 per tax period. (Code of Gen. Ords. 1967, § 32.152; Ord. No. 931336, 12-9-93)

Kansas City Code § 68-391 Collection of unpaid taxes.

Sec. 68-391. - Collection of unpaid taxes. All taxes imposed by this article, together with all interest and penalties, shall be recovered by the city as any other debt is recoverable. (Code of Gen. Ords. 1967, § 32.153; Ord. No. 931336, 12-9-93)

Kansas City Code § 68-392 Credits for tax paid in another city.

Sec. 68-392. - Credits for tax paid in another city. Every individual taxpayer who resides in the city but who receives earnings for work done or services rendered outside the city and has paid or has had withheld a city income or earnings tax on such profits or earnings in another city shall be allowed a credit. This credit will be calculated as one percent of the earnings or net profits earned in such other city or the actual tax paid to such other city, whichever is less. (Code of Gen. Ords. 1967, § 32.154; Ord. No. 931336, 12-9-93)

Kansas City Code § 68-393 Refunds.

Sec. 68-393. - Refunds. (a) When any taxpayer has paid during the taxable year more than the amount of the tax to which the city is entitled under the provisions of this article, a refund of the amount so overpaid shall be made, provided that the taxpayer timely submits a proper claim for refund of such overpayment of tax in a manner prescribed by the commissioner of revenue. (b) A request or claim for refund must be filed by the taxpayer on or before the due date of filing of the federal income tax return for such year; and provided, further, that no refunds of less than $1.00 shall be allowed. (c) Notwithstanding any provision in subsection (a), for taxes which are not paid until after the director has made an assessment, no person shall be entitled to file a claim for refund. (d) Notwithstanding any provision in subsection (a), in the case of any overpayment of any tax under this article, the commissioner may, instead of granting a refund, credit and apply the amount of such overpayment against any uncontested delinquent tax liability of any type whatsoever owed by the taxpayer to the city, and within the period of limitations for collection. (Code of Gen. Ords. 1967, § 32.155; Ord. No. 931336, 12-9-93; Ord. No. 991585, § 1, 12-16-99; Ord. No. 130044, § 13, 1-31-13; Ord. No. 220164, § 1, 3-3-22; Ord. No. 230158, § 1, 3-2-23)

Kansas City Code § 68-394 Penalties and interest on unpaid tax.

Sec. 68-394. - Penalties and interest on unpaid tax. (a) All taxes imposed by this article and remaining unpaid after they have become due shall be subject to a penalty of five percent per month from the date payment was due up to a maximum of 25 percent, plus interest at the rate of 12 percent per annum from the due date to date of payment. (b) If the estimated balance of tax due submitted with a timely request of extension of time to file is at least 90 percent of the amount due for that tax period, then no penalties will apply. (c) Payments received under this article for any tax period shall first be applied to the tax due, then to interest, then to any penalty imposed. (Code of Gen. Ords. 1967, § 32.156; Ord. No. 931138, 10-14-93; Ord. No. 931336, 12-9-93; Ord. No. 130044, § 14, 1-31-13)

Kansas City Code § 68-395 Duties and authority of director.

Sec. 68-395. - Duties and authority of director. The director is hereby charged with the administration and enforcement of the provisions of this article and is hereby authorized and empowered to do the following: (1) Collect and deposit taxes. The director is authorized and empowered to collect and receive the tax, interest and penalties imposed by this article and pay over the proceeds thereof to the city treasurer. (2) Keep accounts. The director is authorized and empowered to keep an accurate account of all such payments received and refunds made by the director. (3) Adopt rules and regulations. The director is authorized and empowered to adopt, promulgate, amend and enforce rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this article, including the authority to provide for an extension of time for filing returns. All such rules and regulations must be approved by the city council before they shall become effective. (4) Adopt and prepare returns and forms. The director is authorized and empowered to adopt, prepare and make available all forms necessary to comply with this article. (5) Examine records. Agents or employees authorized in writing by the director may examine the books, papers and records of any employer or alleged employer, or of any taxpayer or alleged taxpayer, in order to verify the accuracy of any return made, or, if no return was made, to ascertain the tax imposed by this article. Every such employer or alleged employer, or taxpayer or alleged taxpayer, is hereby directed and required to give to the director, or to the director's duly authorized agent or employee, the means, facilities and opportunity for such examinations and investigations as are authorized by this article. (6) Examine under oath. The director may examine any person, under oath or affirmation, concerning any earnings or profits which were or should have been returned for taxation, and to this end may compel the production of books, papers and records and the attendance of all persons before the director, whether as parties or witnesses, whom the director believes to have knowledge of such earnings or profits. (7) Assessment against delinquent taxpayers. If the director determines that any taxpayer subject to the provisions of this article has a tax liability for which that taxpayer has filed no return or has filed an incorrect return and has failed to pay the full amount of tax due, the director shall issue an assessment showing the amount of tax due together with penalty and interest that may have accrued thereon. The director may issue assessments manually or through the use of an automated system or systems. Such assessment shall be served upon the taxpayer by mailing to the taxpayer's last known address. If the taxpayer does not respond to the assessment, by contacting the director, within 30 days of the date of the mailing thereof, such assessment shall be deemed true and correct and may be recovered under the provisions of section 68-391. If the taxpayer does respond to the assessment within 30 days of the date of the mailing thereof, the taxpayer is granted an additional 60 days to pay the assessment and file the necessary returns or to protest all or any part of any taxes assessed against him pursuant to RSMo 139.031. The director is authorized to grant extensions of this 60-day period upon good cause. After the expiration of this 60-day period or any applicable extension, such assessment shall be deemed true and correct and may be recovered pursuant to section 68-391. If the taxpayer has failed to file a return, the director's determination of the tax liability for the assessment shall be based on an estimate of earnings or net profits from any available information. (8) Waive penalties. The director may waive all or any portion of penalties imposed under this article as a result of nonpayment of tax where the taxpayer shows the nonpayment was due to reasonable cause. This authority may be exercised solely at the discretion of the director under special circumstances. The director may also waive penalties under this article by entering into voluntary disclosure agreements with taxpayers under criteria established by the director. This authority shall in no way be construed so as to authorize the waiver of interest by the director. (9) Enter into agreements. The director shall have the authority to enter into agreements with other taxing authorities on the federal, state, county or local levels for the exchange of tax information. However, all such agreements shall protect confidentiality and limit access only to other taxing authorities. (10) Additional powers. The director is authorized and empowered to develop and formulate tax regulations, authorized statistical gathering functions, and the training of employees. (Code of Gen. Ords. 1967, § 32.157; Ord. No. 931336, 12-9-93; Ord. No. 991585, § 1, 12-16-99; Ord. No. 130044, § 15, 1-31-13; Ord. No. 170402, § 1, 7-27-17; Ord. No. 190327, § 1, 5-2-19)

Kansas City Code § 68-400 Penalty for divulging confidential information.

Sec. 68-400. - Penalty for divulging confidential information. (a) Generally. Any information obtained as a result of any return investigation, hearing or verification required or authorized by this article shall be confidential except for official purposes. Any person otherwise willfully divulging such information shall be charged with an ordinance violation. In addition to such penalties, any officer or employee of the city who violates the provisions of this section relative to disclosure of confidential information shall be immediately dismissed from the service of the city. (b) Statistical gathering functions. In addition to revenue division employees, the director may make returns and return information open to inspection by other authorized officers and employees of the finance department but only to the extent necessary to prepare economic or financial forecasts, projections, analyses, budgets, studies or other related statistical gathering functions and activities. (c) Aggregate tax data. The director may compile and publish reports detailing aggregate tax information, data, and statistics. In no event shall any report or any information, data, or statistic be published except in a form which cannot be associated with, or otherwise identify, directly or indirectly, a particular taxpayer. In no event shall any information made available under this subsection include Federal Tax Information (FTI). For purposes of this subsection, FTI includes return or return information received directly from the Internal Revenue Service or obtained through an authorized secondary source. FTI also includes any information that is derived from federal return or return information received from the IRS or obtained through a secondary source. (Code of Gen. Ords. 1967, § 32.162; Ord. No. 931336, 12-9-93; Ord. No. 190327, § 1, 5-2-19)

Kansas City Code § 68-401 Reserved.

Kansas City Code § 68-402 Deadlines falling on Saturday, Sunday, or legal holiday

Sec. 68-402. - Deadlines falling on Saturday, Sunday, or legal holiday When the last day for performing any act under this article, including the filing of a return, request for extension of time to file a return, or making a tax payment, falls on Saturday, Sunday or a legal holiday, the performance of such act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday or a legal holiday. For purposes of this section the last day for the performance of any act shall be determined by including any authorized extension of time; the term legal holiday means a city holiday, a legal holiday on which the United States Postal Service does not deliver mail, or a legal holiday recognized by the Internal Revenue Service for the purpose of determining the due date for state taxpayers filing federal income tax returns. (Ord. No. 070184, § 1, 2-15-07)

Kansas City Code § 68-403 Extension of deadlines for combat zone service.

Sec. 68-403. - Extension of deadlines for combat zone service. (a) For any taxpayer actively serving as a member of the Armed Forces of the United States in a combat zone, contingency operation, or hospitalized as the result of wounds, disease or injury incurred while serving in a combat zone or contingency operation, the due date for filing any return, paying any tax due or filing any claim for refund under this article shall be automatically extended for 180 days after the later of: (1) The last day of service in the combat zone or contingency operation, or (2) The last day of continuous hospitalization for wounds, disease or injury incurred while serving in the combat zone or contingency operation. (b) As used in this section, the term "combat zone" means any area which the President of the United States by Executive Order designates as an area in which Armed Forces of the United States are or have engaged in combat. Service is performed in a combat zone only if performed on or after the date designated by the President by Executive Order as the date of the commencing of combat activities in such zone, and on or before the date designated by the President by Executive Order as the date of the termination of combat activities in such zone. (c) As used in this section, the term "contingency operation" is a military operation that is designated by the Secretary of Defense or results in calling members of the uniformed service, or retains them on active duty, during a war or a national emergency as declared by the President or Congress. (Ord. No. 091074, § 2, 12-17-09)

Kansas City Code § 68-404 Uncollectible assessments.

Sec. 68-404. - Uncollectible assessments. Upon the advice of the city attorney the commissioner of revenue shall abate any earnings tax assessment that the city attorney determines is legally unenforceable because the time to file suit to recover the tax has expired under the statute of limitations. (Ord. No. 150536, § 2, 7-9-15)

Source: City of Kansas City, Missouri, Code of Ordinances, Charter and Zoning and Development Code (Municode Library, library.municode.com)URL: https://library.municode.com/mo/kansas_city/codes/code_of_ordinances?nodeId=COORKAMIVOII_CH68TA_ARTVIEAPRTAFetched: 10/28/2026