Judy Hadley, Commissioner of Revenue
City Hall, Second Floor
414 E. 12th St.
Kansas City, MO 64106
Phone: (816) 513-1120
E-mail: Revenue@kcmo.org
Refunds@kcmo.org
Mission statement
The Revenue Division administers, collects and enforces City ordinances relating to taxes and licenses, and maximizes voluntary payment of taxes and compliance with the City’s tax and licensing ordinances by all members of the City’s tax base. It does this by administering and enforcing such ordinances, disseminating information and providing quality customer service.
Description of organization
The Revenue Division is charged with administering most of the taxes and fees, except property taxes, that the City is authorized to impose and collect. The division also accounts for certain taxes imposed by the City or the State that are collected by the Missouri Department of Revenue and remitted to the City. The taxes administered by the Revenue Division are primarily self-reporting. The income generated by the Revenue Division account for approximately 48 percent of the City’s budgeted income.
The division directly collects the following taxes and fees:
Earnings and profits tax
Convention and tourism tax
Occupational license fee
Utility taxes
Cigarette tax
Arena fees
The State collects and remits to the City the following taxes and fees:
Sales
Local use
Gaming revenues
Motor fuel tax
To handle the administration and collection of the taxes and fees, the division is divided into five sections.
Administrative and Financial Analysis
Audit
Business License
Document Processing
Taxpayer Services
Administrative and Financial Analysis
The Analysis and Administration section is responsible for the general office operations for the division. The section conducts revenue analyses and generates revenue forecasts for taxes and fees the division directly collects and those taxes and fees the state remits to the City. These analyses and forecasts assist with the preparation of the annual budget and review of the budget on a quarterly basis. The staff is responsible for overseeing the City’s Cooperative Agreement with the IRS and training employees in confidentiality requirements. Finally, this section coordinates responses to a wide variety of special projects and inquires.
Audit
The audit section is responsible for obtaining taxpayer compliance with, and educating taxpayers about, the City’s tax ordinances. The Audit section focuses on assurance of compliance with the city’s fee and tax ordinances. Auditors research ordinances and legal cases in conjunction with efforts to apply the ordinances appropriately and ensure that taxpayers are paying the taxes due the City. Auditors interact frequently with the Law Department to review legal issues that are raised. In addition, this section processes and reviews request for refunds.
Business License
The Business License section registers new businesses for all appropriate account types, including employer withholding, profits, occupational license, and convention and tourism. Another function of Business License is handling tax clearance requests, which is a requirement for all businesses entering into contracts with the City.
Document Processing
The Document Processing section is responsible for processing taxpayers’ tax returns and payments. The section processes around 500,000 returns each year, more than 50 percent of these returns in the last four months of the city’s fiscal year.
In 2002, the division launched two programs designed to enhance customer service and reduce the handling of paper returns and payments:
Kansas City KwikFile handles employer filing and payment of earnings tax withholding;
E-file allows wage earners with established accounts to electronically file their annual earnings taxes by either an ACH debit to their bank account or by credit card.
Utilization of the wage earner e-file program is still rather limited, but the KwikFile program has resulted in up to 4,000 payments per month via e-filing the withholding taxes and the quarterly returns.
Taxpayer Services
Taxpayer Services identifies and collects taxes and fees from taxpayers who have delinquent accounts and individuals and business who have not filed or paid taxes. To assist taxpayers, the section also answers questions and resolves issues regarding established accounts takes phone calls in response to initial delinquency bills and notices and reviews requests for penalty waivers. The staff works closely with the Law Department on collecting tax judgments and filing bankruptcy proofs of claim.
