Convenience stores 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 1118 Oak Street, Kansas City, Missouri 64106. A
Zoning Clearance is required.
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.
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 convenience store prepares food on the premises, a
Food Establishment 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 license and permits.
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.
Tips
- Gross receipts are the sales of products except for alcohol, cigarettes, gasoline, alcohol, lottery tickets, newspapers, magazines and tobacco related products. For more information on filing requirements for alcohol and tobacco sales, contact Regulated Industries.
Resources
Code of Ordinances, Chapter 40, Article I
If the convenience store is preparing food on the premises and offering those items for sale, those sales are subject to the convention and tourism tax. Form RD-107 is a tax return that must be filed to report sales of food items prepared on the premises. Form RD-107 should be filed with the same frequency used for remitting state sales tax. The tax of 2% should be separately stated on a customer’s bill similar to sales tax. Remittances can be made electronically on Quick Tax or by using Form RD-137.
Sales of prepackaged food that is prepared off-site and not regularly sold with prepared food items, along with other product sales should be reported on your business license, Form RD-105.
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
