Tuesday, May 27, 2014

A Tale of Two McDonald’s

 It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness… it was the age of the Big Mac, it was the age of the McNugget… 

The monthly sales tax report for Platte County is online and available at www.co.platte.mo.us under News Announcements. 

After I sent out the email announcing the sales tax numbers for the May report, an astute county citizen asked me about the calculation of sales taxes and the sales tax rate.  Specifically, how much sales tax do we really pay?  How is that figure calculated per purchase?  The short answer: it depends. 

All Platte County residents pay 4.225% for the Missouri portion of sales tax and 1.375% in county taxes (broken down below) on purchases made within the county.  However, the rest of the sales tax amount is dependent on where the business is located.  Different cities have different sales tax rates and certain business districts have additional taxes in additional to those rates.


Take McDonald’s for instance: a large Coke at the Platte City McDonald’s will cost $1.08, because you’ll pay eight cents in sales tax (4.225% for Missouri, 1.375% for Platte County and 2.375% for Platte City).  


Drive south on I-29 to the McDonald’s on 64th Street and the very same large Coke will cost you $1.11 – state and county portion of 5.6%, plus Kansas City’s rate of 2.8750%, plus additional 2% for the “restaurant tax on prepared food.”


If you’re shopping in an area that’s part of a Transportation Development District (TDD) or a Community Improvement District (CID), an additional sales tax could be levied on a purchase.  The proceeds collected from that sales tax are then used by the property owner for improvements to the roads and common areas of the shopping center.  For instance, if the McDonald's moved a different part of 64th Street, there could be an additional tax for a TDD.

The Missouri Department of Revenue has a chart on their website listed municipalities and the sales tax rates and the City of Kansas City also lists the rates for these special districts. 
The county and state sales tax is 5.600% and is broken down as follows...

            4.225%            Missouri portion
                        3.0%                Missouri general revenue
                        1.0%                Missouri education
                        0.125%            Missouri conservation
                        0.1%                Missouri parks and soil
            1.375%            Platte County portion
                        0.5%                Platte County general revenue
0.5%                Platte County parks/trails/storm
                        0.375%            Platte County roads

MO DOR’s website has the following rate listing by jurisdiction


However, Kansas City has an additional sales tax for different things and those rates can be found at the KCMO website

http://www.kcmo.org/idc/groups/finance/documents/finance/salesuseproptaxrates2010q3.pdf




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