Leawood, Kansas Is Asking Voters to Replace a 1/8-Cent Sales Tax With a 5/8-Cent One. Here's Why.
Leawood, Kansas has a pipe problem.
The affluent Johnson County suburb south of Kansas City has more than 80,000 linear feet of aging corrugated metal pipe running under its streets. At current funding levels, replacing the remaining system would take approximately 60 years. Parts of Wenonga Lane flood so regularly during heavy rain that water forms ponds in the middle of the road. The Leawood Country Club golf course fills with runoff. A masonry wall has moved an inch and a half from repeated storm events.
And on March 31, 2027, the county sales tax that has been helping pay for Leawood's police and fire departments quietly expires — taking $1.5 million a year in public safety funding with it.
Leawood's Governing Body voted September 8 to put both problems in front of voters at once. A special mail-ballot election is set for March 2, 2027, asking Leawood residents to approve a 5/8-cent special-purpose sales tax to fund street infrastructure, stormwater improvements, and public safety needs. As KSHB reported, if voters accept the measure, the 5/8-cent sales tax would take effect October 1, 2027 and run for 10 years through September 30, 2037.
Mayor Marc Elkins summed up the city's position: "This is ultimately a decision for Leawood voters. Our responsibility is to plan for the long-term needs of our community and give residents clear information about the choices in front of all of us."
What's Actually Changing — The Rate Math
This isn't a straightforward new tax. It's a replacement — and the rate math is more nuanced than a simple "adding 5/8 cents" headline suggests.
Leawood currently has a 1/8-cent special sales tax for streets and stormwater. That tax was set to expire June 30, 2028. If the new measure passes, the existing 1/8-cent tax would be repealed early — on September 30, 2027 — and the new 5/8-cent tax would begin October 1, 2027.
The net rate change: an increase of 1/2 cent, or 0.50%, above what Leawood currently collects through its own special sales tax.
As the Johnson County Post's coverage of Leawood's stormwater crisis explained, the current Leawood sales tax rate is 9.1% — including a 6.5% state rate, 1.475% for Johnson County, and 1.125% for the city. Those numbers are due to change as the county tax ends. Johnson County voters approved a quarter-cent public safety courthouse tax a decade ago, and the revenue generated by that tax is shared with municipalities. Leawood's share amounts to about $1.5 million a year — money it will stop receiving after March 31, 2027.
If the new 5/8-cent tax passes: Leawood's combined rate adjusts upward from its current 9.1% base — with the new city tax replacing both the expiring 1/8-cent city tax and partially filling the gap left by the expiring county public safety tax.
If the measure fails: The existing 1/8-cent city tax eventually expires in 2028, and the county public safety contribution disappears in March 2027 — leaving Leawood with less total sales tax revenue and a significant hole in its public safety budget.
The Three Problems the Tax Is Designed to Solve
As the City of Leawood's official news release detailed, revenue from the proposed tax would be directed to three primary areas.
Stormwater is the most urgent. Leawood's corrugated metal pipe system — much of it installed between the late 1960s and mid-1980s — is reaching the end of its useful life simultaneously across the city. At current funding, replacing the remaining system takes 60 years. The new tax is designed to accelerate that timeline dramatically. Councilmember Julie Cain put it plainly at a recent council meeting: "We are reaching this very critical time in our city where things are starting to fail. Let's bite the bullet. We know what's coming down. Let's just get it done right now."
Streets are the second priority. Residential street maintenance — mill and overlay work, pavement management — has been chronically underfunded relative to Leawood's aging road network. The new revenue would provide additional resources for street repair at a pace that matches the city's infrastructure age.
Public safety is the third and most politically complicated priority. The Johnson County PS3 public safety tax — the quarter-cent courthouse and medical examiner facility tax approved by voters in 2016 — expires March 31, 2027 and is not being renewed. When it sunsets, Leawood's police and fire departments lose approximately $1.5 million annually in county-shared revenue. The new city tax is designed to replace that funding locally rather than leaving the departments with a permanent budget gap.
The Mail-Ballot Format — Why It Matters
Leawood is using a special mail-ballot election rather than a traditional polling place election — a choice that has specific implications for voter turnout and outcome.
Mail-ballot elections in Kansas generate lower turnout than general elections but tend to produce more deliberate voting from the residents who do participate. Leawood used a similar format for previous ballot measures. The March 2, 2027 date was chosen specifically to avoid overlap with other election cycles and to give the city time to plan its transition from the expiring 1/8-cent tax to the new 5/8-cent structure.
A simple majority is required for approval. No supermajority needed — just more yes votes than no votes from Leawood registered voters who return their ballots.
The Revenue Picture — $7.8 Million Annually
The financial stakes are specific and public. Based on 2025 collections, city officials estimated that a 5/8-cent sales tax would generate approximately $7.8 million annually — with potential to reach nearly $9 million by 2032 as Leawood's retail activity grows.
That compares to the approximately $1.5 million generated by the current 1/8-cent tax. The fivefold increase in rate produces a fivefold increase in revenue — money the city has already mapped to specific allocations: approximately $3.4 million to stormwater, $2.4 million to public safety, and $800,000 to street repair, per staff calculations.
For context: Leawood is a regional retail destination in Johnson County — a wealthy suburb with significant commercial activity along major corridors. Its taxable sales base is substantial relative to its residential population, which means a half-cent rate increase generates meaningful revenue without dramatically changing the cost of any individual transaction.
What the Vote Means for Businesses in Leawood
For businesses operating in Leawood or selling taxable goods to Leawood customers, the March 2, 2027 vote determines whether a rate change takes effect October 1, 2027.
If the measure passes: the combined Leawood rate adjusts upward effective October 1, 2027, reflecting the new 5/8-cent city tax replacing the expiring 1/8-cent city tax. POS systems, ecommerce tax engines, and rate tables for Leawood addresses all need to update before October 1, 2027.
If the measure fails: the existing 1/8-cent city tax continues through its June 2028 expiration. The county PS3 tax still expires March 31, 2027 — reducing the county portion of the combined rate at that point regardless of Leawood's ballot outcome. Businesses tracking Leawood rates need to account for that county tax expiration separately from the city ballot measure.
Kansas's combined sales tax rates vary significantly by jurisdiction within Johnson County. As the Kansas Department of Revenue's rate lookup tool shows, neighboring cities in Johnson County — Overland Park, Olathe, Shawnee — all carry different combined rates based on their own local tax histories. Leawood's current 9.1% rate and its post-election trajectory make address-level accuracy essential for any business with significant Johnson County customer volume.
The Broader Pattern
Leawood's ballot measure fits the national pattern we've been tracking all year.
Fargo, North Dakota extended its infrastructure sales tax for 22 years with 73% voter support — pointing to visible completed projects and concrete personal savings. Charleston County, South Carolina put $4.25 billion in transportation funding before voters after its previous measure failed. Ankeny, Iowa approved a 1% local option sales tax tonight after rejecting one in 2018. Clay County, South Dakota residents are fighting back against a new county gross receipts tax. Virginia's 47 jurisdictions are heading to November referendums on school construction sales taxes.
Every one of these stories reflects the same underlying reality: local governments facing infrastructure backlogs, expiring revenue streams, and reduced federal and county support are reaching for the sales tax lever as their most accessible funding mechanism. Voters' responses depend on whether the need is visible, the project list is specific, and the ask feels proportionate to what they're getting in return.
Leawood's flooding streets and the ticking clock on the county public safety tax give the yes campaign two concrete, urgent arguments. Whether that's enough to pass a 5/8-cent measure in a mail-ballot election in March 2027 is a question Leawood residents will answer over the next six months.
Not sure how Leawood's potential October 2027 rate change — or the March 2027 expiration of Johnson County's PS3 tax — affects your compliance obligations for Kansas customers? Book a free consultation with our team at sales.tax. We'll review your Kansas footprint and make sure your rates reflect every change happening in Johnson County over the next 12 months.