When it comes to sales tax revenue, Kansas relies heavily on Johnson county and its surrounding counties in the Kansas City metro. In fact, a third of all the taxable sales in Kansas come from our region.
A report from the Mid-America Regional Council earlier this year shows that Johnson, Leavenworth, Miami and Wyandotte counties together produced 33.08 percent of the state’s sales (for the year ending 2012). The Wichita area produced 23.57 percent of the total, and the entire rest of the state accounted for 43.35 percent of taxable sales. Sales taxes don’t just fuel the state budget, they can be important for cities as well.
Most inhabitants of northeast Johnson County don’t do all of their shopping in one city because it is easy — and sometimes necessary — to cross boundaries to get everything we need. That means you can be paying a different sales tax rate just by walking across the street, sometimes even when you are in the same city.
While the annual budget process cities go through often focuses on the property tax rates that they are setting, for some municipalities sales tax is the biggest revenue source. Another factor is special districts that charge higher sales tax rates than the base rate applied city-wide.
Recent development proposals have used Community Improvement Districts (CID) to finance projects. The CID and a similar Transportation Development District (TDD) allow extra sales taxes to be collected and plowed back into the improvements, often offsetting costs to a private developer.
Recent CID projects include the Village Shops and Corinth Square shopping center renovations in Prairie Village. The Gateway development in Mission and the Woodside Village project in Westwood are planning to use sales tax financing, but the financing structure will not be in place until the projects are built. Roeland Park has three special taxing districts currently.
Roeland Park also is planning a ballot to increase its sales tax rate across the city. Voters will be asked to approve the increase in December. Mission voters last year added a special city-wide sales tax increase dedicated to a new aquatic center and parks and recreation.
What the cities charge, though, is much less than the portion of sales tax collected by the state. Kansas gets 6.15 percent (after the slight reduction that took effect in July). Johnson County government also collects 1.225 percent, some of which is shared with the cities.
Here are the current sales tax rates paid on retail sales in northeast Johnson County, including the 7.375 percent for state and county collections:
- Prairie Village 8.375
- Prairie Village CID 9.375 (Village Shops)
- Prairie Village CID 9.375 (Corinth Square)
- Mission 9.00
- Mission CID 10.00 (Mission Crossing)
- Roeland Park 8.625
- Roeland Park CID 9.625 (Roeland Park Center)
- Roeland Park TDD1 9.625 (Shopping Center)
- Roeland Park TDD2 9.125 (Lowes)
- Westwood 8.375
- Westwood Hills 8.375
- Fairway 8.875
- Mission Hills 8.375
- Mission Woods 7.375
- Leawood 8.50
- Leawood TDD 9.50 (Park Place)
- Leawood TDD 9.50 (119th St.)