The Kansas Supreme Court has agreed to hear the appeal by the City of Mission of a Kansas Court of Appeals ruling that declared the city’s Transportation Utility Fee (TUF) or “driveway tax” illegal.
The appeals court made its ruling last July, forcing the city to abandon the TUF as a means of financing street work in the 2016 budget. To compensate for the loss of the approximately $800,000 that the TUF generated, the city raised the property tax rate this year and has discussed a possible sales tax increase in the future.
The TUF was enacted in 2010. A group of businesses and private citizens filed suit, contending that the assessment was an illegal excise tax. A Johnson County District Court judge ruled in November 2013 that the fee was legal. That ruling was reversed by the appeals court in 2015.
(Read more: Prairie Village Post)