- Getting Started
- Convention & Tourism Tax
- Profits Tax
- Earnings Tax Withholding
- Business License
- Due Date Calendar
Restaurants must be registered and licensed to do business in Kansas City, Missouri. The first step is to submit a Registration Application (Form RD-100).
Other clearances and permit may be requested. Restaurants are required to send the Health Department a Food Establishment Permit Application. The application must be completed and submitted at least 30 days prior to a restaurant’s planned opening or transfer of ownership. Once the permit application has been filed, the Health Department will conduct a pre-opening inspection. The City charges fees for processing applications and issuing food establishment permits.
The Health Department will create an inspection schedule for established restaurants, with intervals that average six months. More frequent inspections may be made at the department’s discretion.
Restaurants must have a license to serve alcoholic beverages. Forms for acquiring a license are available from the Neighborhoods & Housing Services Department, Regulated Industries Division.
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.
Form RD-107 is the tax 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.
- “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.
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.
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.
When an employee receives tips, the employer might not have the chance to withhold federal, state, or local taxes on the tip income. In some situations, the regular pay of an employee is not sufficient for the employer to withhold all local taxes due on the regular pay and tip income. The amount of regular pay and tip income is still taxable. Employees are responsible for filing Form RD-109 annually to report the difference between the total amount of wages and tips received and the amount of tax withheld through payroll withholding.
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. Employers with 250 or more employees must file electronically through Quick Tax. Third party payroll providers may use the Bulk Filing Program to file returns electronically.
After the end of each year, employers are also required to file Form RD-113. The return is due by January 31 and is a reconciliation of annual withholdings to payments remitted. 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. Employers with 250 or more employees must file Form RD-113 and submit W-2 information electronically through Quick Tax.
- Remittance due dates are published annually.
- 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.
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 restaurants that sell items in addition to food. 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 rate Table A included with the form.
Sales of prepared food should not be reported on your business license but are instead subject to the Convention and Tourism Tax 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.
- With the exception of prepared food, sales from a “gift shop” or non-food items sold like mugs and t-shirts are subject to being reported on the business license.
Code of Ordinances, Chapter 40, Article I
2020 Due Dates for Restaurants
1 New Year's Day - City Offices closed
20 Martin Luther King Jr. Day - City Offices closed
31 Convention & Tourism Tax (Form RD-107) - December 2019/ 4th
Quarter 2019, monthly/ quarterly filers
Employer' Quarterly Return of Earnings Withheld (Form RD-110) -
4th Quarter 2019
Employer's Annual Reconciliation of Earnings Withheld
(Form RD-113)/ 2019 W-2 Information
20 Convention & Tourism Tax (Form RD-107) - February 2020, monthly
20 Convention & Tourism Tax (Form RD-107) - April 2020, monthly filers
25 Memorial Day - City Offices closed
22 Convention & Tourism Tax (Form RD-107) - May 2020, monthly filers
3 Independence Day (observed) - City Offices closed
15 2019 Profits Earnings Tax (Form RD-108/ 108B) and Extension
(Form RD-111), calendar filers
31 Convention & Tourism Tax (Form RD-107) - June 2020/
2nd Quarter 2020, monthly/ quarterly filers
Employer's Quarterly Return of Earnings Withheld (Form RD-110) -
2nd Quarter 2020)
20 Convention & Tourism Tax (Form RD-107) - July 2020, monthly filers
7 Labor Day - City Offices closed
21 Convention & Tourism Tax (Form RD-107) - August 2020, monthly
2 Convention & Tourism Tax (Form RD-107) - September 2020/ 3rd
Employer's Quarterly Return of Earnings Withheld (Form RD-110) -
3rd Quarter 2020, monthly/ quarterly filers
11 Veterans Day - City Offices closed
20 Convention & Tourism Tax (Form RD-107) - October 2020, monthly
26 Thanksgiving Day - City Offices closed
27 Thanksgiving Holiday - City Offices closed
21 Convention & Tourism Tax (Form RD-107) - November 2020, monthly
25 Christmas Day - City Offices closed