UMB BANK, NA. v. City of Kansas City

JOSEPH M. ELLIS, Judge.

The City of Kansas City (“the City”) appeals from a judgment entered in the Circuit Court of Jackson County in favor of UMB Bank, N.A. (“UMB”) in UMB’s suit to recover a refund of earnings taxes paid to the City. Specifically, the City challenges the trial court’s determination that UMB was entitled to deduct from its gross earnings certain interest expenses related to nontaxable investments in government securities.

UMB is a for-profit, banking corporation headquartered in Kansas City, Missouri. As such, UMB was subject to the Earnings and Profits Tax Ordinance of…