Local Tax Issues

Chiefs and Royals Could Ask For 40-Year Sales Tax Increase Extension

Chiefs and Royals Could Ask For 40-Year Sales Tax Increase Extension

The Kansas City Chiefs and Royals could be asking local officials for a 40-year sales tax increase extension, according to new information.

On April 5, 2006, Jackson County voters approved a 3/8 cent sales tax to go toward improvements for both the NFL and MLB teams' stadiums. Since then, the Royals have won the World Series (2015) and the Chiefs have taken home the Lombardi Trophy after Super Bowl LIV (2020) and Super Bowl LVII (2023).

Credit: Christian Petersen/Getty Images

Originally, the sales tax increase was set to last for 25 years. This means it is currently set to expire in 2031. 

However, beginning last year, the Royals began putting out feelers in a bid to extend the tax. The baseball organization has plans to construct a new stadium in either downtown Kansas City, Missouri or in the adjacent community of North Kansas City. Club owner John Sherman has indicated that a site will be selected by the end of summer.

Sherman noted that the downtown East Village structure would take up about 20 acres and would be a "more vertical" design, while the Clay County site in North Kansas City would be approximatley 80 acres and would be a "more horizontal" project in terms of aesthetics.

In regard to the tax increase extension, it was most recently discussed at a July 31 meeting. Jackson County Legislator Manny Abarca asked County Administrator Troy Schulte "if a terms sheet existed for the Royals." 

Per a FOX 4 report, Schulte replied, “I’ll defer you to the county executive. We have a terms sheet. I would hardly call it a terms sheet though.”

Terms sheets, in general, outline general details of projects like stadium construction, detail financial requirements, and specify what teams and organizations require of local taxpayers. 

Soon after clarifying that a terms sheet, in traditional terms, has not yet been provided, Schulte offered more information, stating, “They [the Royals] kind of extended -- they wanted a 40-year lease, a 40-year lease extension."

Credit: Tim Nwachukwu/Getty Images

This would, of course, be a 15-year extension on the existing 25-year contract.

According to FOX 4, County Executive Frank White’s office reportedly wants more information from both teams prior to making any further announcements regarding the possible extension of the 3/8 cent sales tax. 

What do you think about the potential extension of this sales tax increase?

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Feature Image Credit: Brian Fluharty/Getty Images

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Rebekah Barton

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