Hotels must be registered and licensed to do business in Kansas City, Missouri. The first step is to submit a Registration Application (Form RD-100).
Form RD-100 can be submitted electronically on Quick Tax or in person to the Business License Office at City Hall, 1st floor, 414 E. 12th St., Kansas City, Missouri 64106. A Zoning Clearance is required.
Other clearances and permits may be requested, depending on whether food or liquor will be served on the hotel premises. The City's Regulated Industries Division requires various applications, clearances and permits. For instance, for the sale of cigarettes, a cigarette application and license must be obtained. For the sale of alcohol, a liquor license must be obtained from Regulated Industries and a clearance letter issued by Revenue staff.
If the hotel prepares food on the premises, a Food Establishment Permit Application is required by the City's Health Department. One application has to be completed for prepared food and one for packaged food. Contact the Health Department for further inquiry of needed licenses and permits.
Once the application is processed, the appropriate tax accounts will be created and you will receive a notice listing your account numbers to reference on returns you file and when communicating with the Revenue Division.
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Convention and Tourism Tax - Hotels, Motels, and Tourist Courts
Form RD-106 is used by hotels or motels to file and pay the Convention and Tourism (C&T) Tax of 7.5% on the amount charged for sleeping rooms. The tax applies to all sales or charges paid by transient guests for a sleeping room and its furnishings and for the services accompanying the use of the room. It includes use of all items and services that are connected with or incidental to the rental of the sleeping room.
Rooms rented to non-transient guests are not included in the tax. A non-transient guest is a person who occupies a room in a hotel, motel or tourist court for more than 31 days during any calendar quarter.
The tax should be separately stated on a customer’s bill, similar to sales tax. Form RD-106 should be filed with the same frequency used for remitting state sales tax. Remittances can be made electronically on Quick Tax or by using Form RD-136.
The C&T tax of 2% on prepared food items is paid separately on a different tax form (see the Convention and Tourism Tax - Food section below for more information).
Tips
- Charges for a room that is rented by a business (i.e. an airline) may not be deducted from gross receipts as “non-transient” (businesses do not qualify as “permanent guests”).
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Room service charges are subject to the C&T tax of 2% on prepared food - provided the charges are separately stated (if not, subject to 7.5% room rate)
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Complementary food – such as a continental breakfast – is not subject to the C&T tax on food (as the “price” of the food is included in the price of the room and thus subject to the 7.5% C&T tax on room charges). However, any “grab & go” food items prepared on premises are subject to the C&T tax on food.
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Arena Fees charged to the customer are subject to the 7.5% C&T tax rate on rooms.
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Bed and breakfasts or other lodging establishments with eight rooms or fewer are not required to charge the C&T tax on room stays. However, this does not exempt them from other potential tax or licensing requirements.
- Short-Term Rentals (STRs): Even if an establishment has eight or fewer rooms, it may still be subject to STR taxes, permits, and licensing requirements. Property owners and operators should review local STR regulations to ensure compliance. See STR Tax Guide .
- Long-Term Stays: If a guest's stay exceeds 30 consecutive days, the establishment is considered to be providing long-term lodging and must obtain a normal business license to report those stays.
- Mixed Lodging (Both Short-Term and Long-Term stays): Establishments offering both short-term and long-term lodging must maintain both a business license and a C&T account to meet reporting and tax obligations.
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The only guests – other than “non-transient” guests – that are exempt from the C&T are employees of the federal government on official business.
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Cancellation charges are not subject to tax on rooms.
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Two percent (2%) of the tax due may be retained by the taxpayer if the tax is paid by the due date.
Resources
Code of Ordinances, Chapter 68, Article IX
Convention and Tourism Tax Regulations
Convention and Tourism Tax - Food
A Convention and Tourism Tax return must be filed for food sales if the hotel has a restaurant, or otherwise prepares food on the premises. Form RD-107 is the return used to file and pay the tax of 2% on prepared food items. This includes alcoholic beverages.
The tax should be added to customers' bills in a similar manner as sales tax. Form RD-107 should be filed with the same frequency used for remitting state sales tax. Remittances can be made electronically on Quick Tax or by using Form RD-137.
Tips
- “Preparation” is an expansive definition and includes heating of food, mixing and combining two or more food ingredients or repackaging food into serving-sized portions.
- Heating of food by the customer does not make the item subject to tax unless other food items are prepared on the premises.
- Some items are not subject to tax regardless if they are “prepared” or not (if those are the only “prepared” items sold). These items can be found in section 1.551-3 (B)(5)(a) – (f) of the Convention & Tourism Tax Regulations (page 11). If you sell “prepared” food items that are not included in this list then both the other “prepared” items and those listed are subject to the tax.
- Prepackaged food or drinks regularly sold with prepared food items are subject to tax.
- Two percent (2%) of the tax due may be retained by the taxpayer if the tax is paid by the due date.
Resources
Code of Ordinances, Chapter 68, Article IX
Convention and Tourism Tax Regulations
The Arena Fee is $1.50 per room daily charge on each sleeping room. Beginning August 1, 2023, this will increase to $3.00 per room, per day.
Form RD-206 is the quarterly return used by a hotel or motel to file and pay the per day Arena Fee on occupied rooms. This fee is generally passed on to customers. If added to customer bills, the fee should be separately stated similar to the sales tax and becomes part of the hotel’s receipts and subject to the Convention and Tourism tax of 7.5%.
Bed and breakfasts and other lodging establishments with eight rooms or less are not subject to the Arena Fee. Instead, these charges would be reported on a business license.
Resources
Code of Ordinances, Chapter 40, Article II
Form RD-108/ 108B is a tax return filed annually and is used to pay the 1% earnings tax on the net profits of a business. The return is due by April 15 of each year and is required even if there is a loss. If you file income taxes on a fiscal year basis, the return is due 105 days from the end of your fiscal year.
Extensions of time to file may be requested by submitting Form RD-111. Extension requests are granted to provide an additional six months to file. They are not an extension of time to pay the tax due. A payment of at least 90% of the tax due must be submitted with Form RD-111 to avoid penalty and interest. This request is separate from an extension request submitted to the IRS for federal income tax purposes and should be sent directly to the Revenue Division. The IRS does not send this information to municipalities.
Resources
Code of Ordinances, Chapter 68, Article VI
Earnings and Profits Tax Regulations
Employers are required to deduct the earnings tax on wages and salaries paid to residents of Kansas City, Missouri and non-residents performing services within Kansas City, Missouri city limits.
In general, taxable earnings are gross compensation less contributions to cafeteria plans and qualified deferred compensation plans, similar to the amount used to calculate Box 1 of Form W-2 for federal income tax purposes. The withholding tax is to be remitted to the City at the same frequency used for state income tax withholding purposes. Remittances can be made electronically on Quick Tax or by using Form RD-130M or Form RD-130QM.
In addition to regular remittances, Form RD-110 is a return that is filed quarterly to report the taxable earnings paid for the quarter. The return is required even if there was no withholding during the quarter. Payments can be made with Form RD-110 for amounts not previously paid through prior remittances. Beginning January 1, 2021, Form RD-110 must be filed electronically. Employers can use Quick Tax or the Bulk Filing Program through a third party payroll provider. Failure to file electronically may result in filing penalties.
After the end of each year, employers are also required to file a reconciliation of annual withholdings to payments remitted on Form RD-113. The return is due by January 31. W-2 information is also required to be submitted at the same time. W-2 information should only be provided for employees who had earnings tax withheld from their compensation. Beginning January 1, 2021, Form RD-113 must be filed electronically. This includes W-2 records. Employers can use Quick Tax or the Bulk Filing Program through a third party payroll provider.
Tips
- Employers that fail to submit Form RD-113 or W-2 records are subject to a penalty. The penalties mirror those charged by the Internal Revenue Service.
Resources
Code of Ordinances, Chapter 68, Article VI
Earnings and Profits Tax Regulations
Earnings Tax Magnetic Media and Electronic Filing Specifications
A business license is required for hotels that sell items or services in addition to nightly room rentals. These charges should be reported on Form RD-105.
To obtain a license, new businesses are required to file Form RD-105 no more than 60 days after opening in Kansas City, Missouri. A business license must be renewed each year by filing Form RD-105 prior to March 1. The cost of a license is determined by the amount of gross receipts from the prior calendar year using Table A included with the form.
Room service charges should not be reported on your business license but are instead subject to the Convention and Tourism Tax on prepared food and should be reported on Form RD-107. Sales of prepackaged food, prepared off-site and not regularly sold with prepared food items, are reported on your business license.
Tips
- Non-food sales from a “gift shop” or "grab and go" food items prepared off-site are subject to being reported on the business license.
Resources
Code of Ordinances, Chapter 40, Article I
2026 Due Dates for Hotels
January
31 Employer' Quarterly Return of Earnings Withheld (Form RD-110) -
4th Quarter, previous year.
31 Employer's Annual Reconciliation of Earnings Withheld
(Form RD-113)/ previous year W-2 Information
31 Convention & Tourism Tax (Form RD-107) - December/ 4th
Quarter, previous year, monthly/ quarterly filers
February
28 Convention & Tourism Tax (Forms RD-106, RD-107) - January, monthly filers
March
31 Convention & Tourism Tax (Form RD-107) - February, monthly filers
April
15 Profits Earnings Tax (Form RD-108/ 108B) and Extension
(Form RD-111), calendar filers
30 Employer's Quarterly Return of Earnings Withheld (Form RD-110) -
1st Quarter
30 Convention & Tourism Tax (Forms RD-106, RD-107) - March, monthly/quarterly filers
June
2 Convention & Tourism Tax (Forms RD-106, RD-107) - April, monthly filers
30 Convention & Tourism Tax (Forms RD-106, RD-107) - May 2025, monthly filers
July
31 Employer's Quarterly Return of Earnings Withheld (Form RD-110) -
2nd Quarter)
Convention & Tourism Tax (Forms RD-106, RD-107) - June, monthly filers
September
2 Convention & Tourism Tax (Forms RD-106, RD-107) - July, monthly filers
30 Convention & Tourism Tax (Forms RD-106, RD-107) - August, monthly filers
October
31 Employer's Quarterly Return of Earnings Withheld (Form RD-110) -
3rd Quarter
31 Convention & Tourism Tax (Forms RD-106, RD-107) - September/ 3rd Quarter, monthly/ quarterly filers
December
2 Convention & Tourism Tax (Forms RD-106, RD-107) - October, monthly filers
31 Convention & Tourism Tax (Forms RD-106, RD-107) - November, monthly filers
