Kearney Voters Pass Use Tax

On November 2, Kearney residents voted to increase needed city services and amenities in a close election over the use tax initiative.

The City of Kearney, in collaboration with a citizen-lead group, created a strategy to distribute incoming funds from the use tax. The plan called for the addition of police officers, an animal control officer, the building of Hall Park, a dedicated senior citizens’ park, additional pickleball courts, and numerous sidewalks and trails throughout the city.

According to uncertified results from the Clay County Board of Elections, voters approved the measure 52% - 48%.

This 3% use tax will only be collected on goods purchased from out-of-state vendors who are currently not paying local sales tax. It matches the 3% sales tax people pay when they shop at local stores, however residents will only pay one or the other; never both.

In addition to funds recouped from out-of-state vendors, Kearney will be able to keep about $200,000 of sales tax revenue when residents buy a vehicle from out of state. Missouri State requires cities to pass a use tax before November 2022, or that revenue would be lost.

The newly adopted use tax goes into effect on April 1, 2022. Kearney now joins a large group of Missouri cities with populations of 2,000 or more who already have a use tax in place. Neighboring cities with a use tax include Kansas City, Liberty, Gladstone, Smithville and Excelsior Springs. Clay County also has a county use tax.

In another closely watched initiative, Proposition A, the Clay County Sheriff’s Office tax renewal effort, overwhelmingly passed with more than 77% of voters approving the measure. This initiative allows for the continuance of the existing one-eighth cent law enforcement sales tax. The tax, in effect since 1998, funds about $5 million of the agency’s roughly $20 million annual budget.

KPGZ News - Brian Watts contributed to this story