Shopping centers and other developments around the Kansas City area are collecting higher sales taxes through creation of community improvement districts to fund maintenance and upgrades.
Usually, CIDs are popular financing alternatives to tax abatement, tax increment financing or other public incentives. But a luxury hotel’s request to impose a CID sales tax near the Country Club Plaza has left a sour taste in some mouths.
When the InterContinental Hotel this month sought CID approval for a 1-cent sales tax to help pay for $16 million in deferred maintenance upgrades, the Kansas City Council and others asked tough questions — particularly because the law requires private property to be declared “blighted” before it qualifies for a CID to improve or reconstruct the property.
One answer may come Thursday, when the council is scheduled to vote on the InterContinental’s request.
Despite opposition, supporters expect the request to prevail, countering the tax increase will largely be paid by out-of-town guests and is a way to preserve one of the area’s most prestigious hotels.
Read more: Kansas City Star