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On Track with KC | Who pays for KC Streetcar's $350M Main Street extension?

Property assessment, sales tax, federal grant combine to cover costs
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This story is part of an ongoing series, On Track with KC. If you have questions about the extension of the streetcar, you can submit them here.

The KC Streetcar will remain fare-free when the Main Street extension opens later this year.

Work on the $350 million, 3.5-mile extension began in April 2022.

Shoppers and property owners will be paying for the extension through 2045.

The KC Streetcar Authority has been paying for the project by collecting a 1% sales tax from retailers within 1/3 of a mile of the streetcar line.

Property owners within that boundary must pay a special assessment based on the value of their property.

The assessment and sales tax are scheduled to remain in place until 2045 along the Main Street extension.

The streetcar is using this same method to pay for the “starter line,” which opened in 2016. Taxes and assessments there expire in 2037.

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This map shows the boundaries of a special assessment and sales tax zone helping pay for the KC Streetcar.

Seven members of a transportation development district board oversee the funds.

In 2021, the Federal Transit Administration provided a $174 million grant to cover some capital expenses, like buying streetcars. This covers roughly half of the Main Street extension costs.

David Johnson is the treasurer of the Main Street Extension Transportation Development District. He said the project is on budget.

“It’s enough to pay for fast, frequent and free operations. That’s sustained over time,” Johnson said of the success of the funding model.

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David Johnson is treasurer of the Main Street Transportation Development District Board.

Shoppers told KSHB 41 News they don’t even notice the extra sales tax added to their purchases along the streetcar route.

“Those stores are benefiting by people getting on and off of the streetcar,” explained Mandy Rheuport, who bought lunch at Extra Virgin Grab & Go on Monday. “When I was living in the River Market, I was benefiting by getting to use the free service all the time to bring me to all the stores, restaurants and bars. I think it’s worth it.”

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When Mandy Rheuport and others shop at retailers along the KC Streetcar route, they pay an extra 1% sales tax to support the streetcar.

The KC Streetcar Authority said the public will be able to ride the southern extension in 2025. Construction is about 98% complete.

Leaders with the streetcar and Kansas City must also complete several tests before opening the line to service.

KSHB 41 reporter Charlie Keegan covers politics in Kansas, Missouri and at the local level. Share your story idea with Charlie.