Kansas City, Missouri, Question 1, Property Tax Cap for Economic Development Projects Initiative (June 2019)

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Local ballot measure elections in 2019
Question 1: Kansas City Property Tax Cap for Economic Development Projects Initiative
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The basics
Election date:
June 18, 2019
Status:
Defeatedd Defeated
Topic:
Local property tax
Related articles
Local property tax on the ballot
June 18, 2019 ballot measures in Missouri
Jackson County, Missouri ballot measures
Other counties
City budget on the ballot
See also
Kansas City, Missouri

A citizen initiative designed to implement a cap on tax increment funding (TIF) for economic development was on the ballot for Kansas City voters in Jackson, Cass, Clay, and Platte counties in Missouri on June 18, 2019. It was defeated.

A yes vote was a vote in favor of enacting a 50 percent cap on the amount of ad valorem property taxes that may be used toward economic development projects in the city.
A no vote was a vote against enacting a 50 percent cap on the amount of ad valorem property taxes that may be used toward economic development projects.

In 2017, the city implemented a 75 percent incentive cap on ad valorem tax incentives for economic development. Question 1 was a citizen initiative designed to enact a more restrictive cap of 50 percent on the amount of ad valorem property taxes that the city could use toward economic development incentives.[1][2]

Election results

Kansas City Question 1

Result Votes Percentage
Yes 23,492 34.94%

Defeated No

43,744 65.06%
Results are officially certified.
Source


Text of measure

Ballot question

The ballot question was as follows:[1]

Shall the City of Kansas City cap the amount of ad valorem real property taxes that may be utilized in furtherance of economic development projects through the Land Clearance for Redevelopment Authority of Kansas City, Missouri, the Planned Industrial Expansion Authority of Kansas City, Missouri, the Kansas City, Missouri Port Authority, the Tax Increment Financing Commission of Kansas City, Missouri and the City of Kansas City, Missouri, by prohibiting the abatement, exemption or redirection of more than fifty percent (50%) of the ad valorem real property taxes that would have been due and payable but for the utilization of economic development incentives?[3]

Full text

The full text of the measure is available here.

Support

Proponents

KC TIF Watch

The Coalition for Kansas City Economic Development Reform, also known as KC TIF Watch led the campaign in favor of Question 1.[4]

Arguments

KC TIF Watch included the following statement in support of Question 1 on its Facebook page:[4]

The City of Kansas City, despite objections from citizens and taxing jurisdictions, continues to give generous incentives for developments located in areas that no longer need it. Money is diverted from voter-approved public services in order to fund these projects, which are in areas where most voters can't even afford to live.

These voter-approved public services suffer while developers build luxury housing downtown, in the crossroads and the Plaza.

We want to provide more equity for the taxing jurisdictions, while continuing to spur development in the city, especially east of Troost. [3]

—KC TIF Watch

Opposition

Opponents

The Committee for Kansas City Jobs led the campaign in opposition to Question 1.[5]

The Greater Kansas City Chamber of Commerce and former Kansas City mayor Kay Barnes opposed Question 1.[5][2]

Arguments

Kay Barnes said, "It’s clear to me that 95 percent of the population doesn’t understand how TIF works. This is an extremely dangerous question on the ballot. I shudder about what it will mean if it passes."[5]

The Greater Kansas City Chamber of Commerce made the following statement in opposition to Question 1:[2]

We are just beginning to see the positive effects on development deals using the 75 percent cap.

Other reasons for the KC Chamber’s opposition:

  • Question 1 provides no flexibility for underserved and under-resourced areas. For example, we are about to see important projects at places like 63rd and Prospect and a new downtown high rise office building. A 50 percent cap would stop both deals.
  • Question 1 provides no exceptions for job creation.
  • Question 1 leaves KCMO at a significant disadvantage, considering the ten cities within the region with whom the city competes have no such incentive cap.
  • Question 1 sends a message to the rest of the country that KCMO is closed for business.

[3]

—KC Chamber of Commerce

Path to the ballot

See also: Laws governing local ballot measures in Missouri

This measure was put on the ballot through a successful initiative petition campaign led by the Coalition for Kansas City Economic Development Reform, also known as KC TIF Watch. The signature requirement to place an initiative on the ballot in Kansas City is equal to 5 percent of the total vote cast for mayoral candidates at the last preceding regular municipal election. KC TIF Watch needed to collect 1,708 signatures. On November 29, 2018, the city clerk verified that proponents had submitted 2,321 valid signatures.[6]

See also

External links

Support

Footnotes