Kansas City’s Reverse Robin Hood

Economy |
By Patrick Tuohey | Read Time 2 minutes

The poor in Kansas City face a double hit: We are generally a high tax city, and development policy ignores the poorer east side. To make matters worse, the taxes in the poorer part of the city are higher than they are elsewhere. Aldi-map-w-taxesThe map to the right shows a portion of Kansas City from Crown Center to the north, Waldo to the south, State Line Road to the west, and Interstate 435 to the east. The location of the three Aldi grocery stores are marked with a shopping cart. The sales tax charged at each location—gathered from shopping receipts and Jackson County—is listed next to each store.

The Aldi in Gladstone, Missouri, just outside the city limits to the north, is not shown on the map. It charges only 4.725 percent sales tax. Again, that was no surprise because Kansas City is generally a high tax city.

The stores in Waldo and East Brookside to the south both charge 5.85 percent sales tax. The Aldi to the north, supposedly in the middle of a food desert but definitely in the poorer part of town, charges 6.35 percent sales tax.

The reason for this higher rate is the Independence Avenue Community Improvement District (CID), which collects an additional .5 percent tax on top of the existing sales tax. This means that the tax rate on unprepared food such as groceries is 6.35 percent; for restaurants it is 11.35 percent. According to their website, the purpose of the CID is:

to provide for enhanced and reliable improvements, security, services and activities, such as general maintenance of public areas, continued efforts to address area beautification related issues, as well as other concerns within the Independence Avenue corridor not already receiving such services.

It used to be that security, general maintenance, and beautification were addressed by the police, public works, and the parks department. As the city fails to provide these basic services, neighborhoods step in and do it themselves. As a result, the poorest neighborhoods, where the need is greatest and the ability to pay lowest, pay higher taxes.

About the Author

Patrick Tuohey is a senior fellow at the Show-Me Institute and co-founder and policy director of the Better Cities Project. Both organizations aim to deliver the best in public policy research from around the country to local leaders, communities and voters. He works to foster understanding of the consequences — often unintended — of policies regarding economic development, taxation, education, policing, and transportation. In 2021, Patrick served as a fellow of the Robert J. Dole Institute of Politics at the University of Kansas. He is currently a visiting fellow at the Yorktown Foundation for Public Policy in Virginia and also a regular opinion columnist for The Kansas City Star. Previously, Patrick served as the director of municipal policy at the Show-Me Institute. Patrick’s essays have been published widely in print and online including in newspapers around the country, The Hill, and Reason Magazine. His essays on economic development, education, and policing have been published in the three most recent editions of the Greater Kansas City Urban League’s “State of Black Kansas City.” Patrick’s work on the intersection of those topics spurred parents and activists to oppose economic development incentive projects where they are not needed and was a contributing factor in the KCPT documentary, “Our Divided City” about crime, urban blight, and public policy in Kansas City. Patrick received a bachelor’s degree from Boston College in 1993.

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