Session of 1998
                   
HOUSE BILL No. 2646
         
By Representative Flower
         
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            9             AN ACT amending the Kansas enterprise zone act; concerning eligibility
10             for exemptions from sales taxation; amending K.S.A. 1997 Supp. 74-
11             50,115 and repealing the existing section.
12            
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 1997 Supp. 74-50,115 is hereby amended to read
15       as follows: 74-50,115. (a) A manufacturing business may be eligible for a
16       sales tax exemption under the provisions of subsection (cc) of K.S.A.
17       79-3606, and amendments thereto, if the manufacturing business com-
18       plies with the following requirements:
19           (1) A manufacturing business shall provide documented evidence of
20       job expansion involving the employment of at least two additional full-
21       time employees; and
22           (2) a manufacturing business located within the state of Kansas that
23       has documented evidence of job expansion as provided in paragraph (1),
24       which relocates in another city or county within the state of Kansas must
25       receive approval from the secretary prior to qualifying for the sales tax
26       exemption in subsection (cc) of K.S.A. 79-3606, and amendments thereto,
27       except that approval by the secretary shall not be required if the manu-
28       facturing business relocates within the same city.
29           (b) A nonmanufacturing business may be eligible for a sales tax ex-
30       emption under the provisions of subsection (cc) of K.S.A. 79-3606, and
31       amendments thereto, if the nonmanufacturing business complies with the
32       following requirements:
33           (1) A nonmanufacturing business shall provide documented evidence
34       of job expansion involving the employment of at least five additional
35       full-time employees; and
36           (2) a nonmanufacturing business located within the state of Kansas
37       that has documented evidence of job expansion as provided in paragraph
38       (1), which relocates in another city or county within the state of Kansas
39       must receive approval from the secretary prior to qualifying for the sales
40       tax exemption in subsection (cc) of K.S.A. 79-3606, and amendments
41       thereto, except that approval by the secretary shall not be required if the
42       nonmanufacturing business relocates within the same city.
43           (c) A retail business may qualify for the sales tax exemption under

HB 2646

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  1       subsection (cc) of K.S.A. 79-3606, and amendments thereto, if the retail
  2       business complies with the following requirements:
  3           (1) A retail business shall provide documented evidence of job ex-
  4       pansion involving the employment of at least two additional full-time em-
  5       ployees; and
  6           (2) such retail business locates or expands to a city having a popula-
  7       tion of 2,500 or less or to a county having a population of 25,000 or less,
  8       as determined by the latest United States federal census.
  9           (d) Any person constructing, reconstructing, remodeling or enlarging
10       a facility which will be leased for a period of five years or more to a
11       business that would be eligible for a sales tax exemption hereunder if
12       such business had constructed, reconstructed, enlarged or remodeled
13       such facility itself shall be entitled to the sales tax exemption under the
14       provisions of subsection (cc) of K.S.A. 79-3606, and amendments thereto.
15           (e) A business may qualify for a sales tax exemption under subsection
16       (cc) of K.S.A. 79-3606, and amendments thereto, without regard to any
17       of the foregoing requirements of this section if it is certified as a qualified
18       firm by the secretary of commerce and housing pursuant to K.S.A. 1997
19       Supp. 74-50,131 and is entitled to the corporate tax credit established in
20       K.S.A. 1997 Supp. 74-50,132 or has received written approval for partic-
21       ipation and has participated, during the tax year in which the exemption
22       is claimed, in training assistance by the department of commerce and
23       housing under the Kansas industrial training, Kansas industrial retraining
24       or state of Kansas investments in lifelong learning program.
25           (f) The secretary may adopt rules and regulations to implement and
26       administer the provisions of this section.
27           Sec. 2. K.S.A. 1997 Supp. 74-50,115 is hereby repealed.
28           Sec. 3. This act shall take effect and be in force from and after its
29       publication in the statute book.
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