On Thursday, March 2, 2023, the City Council in Kansas City amended Section 68-393 of the city’s Code of Ordinances. This, again, changes how taxpayers request a refund from the city for the Kansas City earnings tax.
Under the amended ordinance, a taxpayer must complete the following steps to properly request a refund:
- The taxpayer must submit Form RD-109 and RD-109NR, if applicable;
- The taxpayer must submit sufficient documentation to show that the taxpayer is entitled to a refund; and
- All of these documents must be submitted by the federal income tax deadline (April 18, 2023).
Form RD-109NR instructions state the following types of documentation include verifiable records:
- appointment calendar
- work and/or travel orders
- time and/or payment records
- travel logs
- certain types of receipts
- proof of change of address such as utility bills, lease agreements, and property tax receipts
An extension request filed with the city of Kansas City will provide a taxpayer with six additional months to file the return. However, the taxpayer must comply with the city’s Municipal Code of Ordinances to be considered valid.
Kansas City imposes a 1% tax on the earnings of all resident individuals of the city and the earnings of nonresident individuals for services performed or rendered in the city.
For tax years prior to 2022, taxpayers were entitled to a refund as long as the taxpayer filed a proper claim for the overpayment. On March 14, 2022, the City Council first amended §68-393 of the city’s Code of Ordinances, which changed the process in which taxpayers could request a refund from the city, notably directing taxpayers to Revised Statutes of Missouri §139.031.
Because the amended ordinance is new this year, we encourage taxpayers to reach out to FORVIS for assistance with their Kansas City earnings tax refunds. We also are available to advise how to plan around the Kansas City earnings tax withholdings to help taxpayers avoid the refund process in future tax years.
If you or your client would like assistance with sourcing, please reach out to our State & Local Tax group. For more information, reach out to a professional at FORVIS or submit the Contact Us form below.