Kansas City, Missouri adds extra step for people seeking earnings tax refunds
City now requires people to file a separate petition
City now requires people to file a separate petition
City now requires people to file a separate petition
If you pay the Kansas City, Missouri earnings tax or e-tax as it's called and you expect a refund next year, there's been a change.
A postcard from the city has been showing up in the mail. What it says is that starting next year, people will have to file what's called a valid protest with the city to get a refund.
Becky Peck, of Liberty, works at home and she received the postcard.
"Well, the language they used was what got me. You have to, will be required to have a valid protest to get my own money back," Peck said.
Peck pays the city's e-tax. After waiting five months to get last year's refund, she said this is not what she wanted to see.
"I think it's just a lot of hoops to drive people away," Peck said.
Mike Martin said he doesn't understand it either. He's spent 30 years in the tax and financial services business.
"This ... what seems to be a blatant attempt to frustrate the filing process for reasons that I can't get a good explanation," Martin said.
It was March when the Kansas City council passed an ordinance that says starting next year if you pay the city's e-tax and you're due a refund, you'll have to file a separate petition with the city to get it. The ordinance was designed to keep the city in line with state law.
"But in order to get it, you're going to have to file this petition. You're going to have to go out and get a notary stamp. You're going to have to bring it back. We're going have to file it electronically and even then, you may have to wait months to get the Kansas City, Missouri Finance Department to pay," Martin said.
The city's e-tax is a big deal, generating more than $290 million, which helps pay for things such as filling potholes and for public safety, like police and firefighters and paramedics. It also helps pay for snow removal and picking up the trash.
"And that petition form, have you seen it? Do you know what it looks like?" KMBC's Kris Ketz asked Martin.
"I tried finding it. I was told that it exists," Martin said.
Becky Peck hasn't seen it either, but she said she'll be looking for it.
"I definitely will. It's worth too much money," Peck said.
This change takes effect next year. It has been posted on the city's website. The postcard mailing is part of an effort by the city to make sure people know what's coming next year.