Session of 1998
                   
HOUSE BILL No. 3002
         
By Committee on Taxation
         
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            9             AN ACT relating to economic development tax incentives; concerning
10             reports of Kansas, Inc. relating thereto; amending K.S.A. 1997 Supp.
11             74-8017 and repealing the existing section.
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13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 1997 Supp. 74-8017 is hereby amended to read as
15       follows: 74-8017. (a) It shall be the duty of Kansas, Inc. to prepare an
16       annual report evaluating the cost effectiveness of the various income tax
17       credits and sales tax exemptions enacted to encourage economic devel-
18       opment within this state and submit the same to the standing committees
19       on taxation and economic development of the house and assessment and
20       taxation and commerce of the senate at the beginning of each regular
21       session of the legislature. The For the purpose of conducting a confiden-
22       tial survey in order to properly prepare such report, the secretary of
23       revenue shall develop a questionnaire on the utilization of state income
24       tax credits and sales tax exemptions that shall be completed by all cor-
25       porate taxpayers subject to state income tax that shall be submitted to the
26       department of revenue concurrently with the filing of an annual corporate
27       income tax return. The questionnaire shall require respondents to indi-
28       cate utilization of provide Kansas, Inc. with the name, address and tele-
29       phone number of any taxpayer utilizing the following credits and exemp-
30       tions:
31           (1) Income tax credits authorized under the provisions of the job
32       expansion and investment credit act of 1976 and acts amendatory thereof
33       and supplemental thereto;
34           (2) income tax credits for expenditures in research and development
35       activities authorized by K.S.A. 79-32,182 and 79-32,182a, and amend-
36       ments thereto;
37           (3) (2) income and financial institutions privilege tax credits for cash
38       investment in stock of Kansas Venture Capital, Inc. authorized by K.S.A.
39       74-8205 and 74-8206, and amendments thereto;
40           (4) (3) income tax credits for cash investment in certified Kansas ven-
41       ture capital companies authorized by K.S.A. 74-8304, and amendments
42       thereto;
43           (5) (4) income tax credits for cash investment in certified local seed

HB 3002

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  1       capital pools authorized by K.S.A. 74-8401, and amendments thereto;
  2           (6) (5) income tax credits for investment in the training and education
  3       of qualified firms' employees authorized by K.S.A. 1997 Supp. 74-50,132,
  4       and amendments thereto; and
  5           (7) (6) sales tax exemptions for property or services purchased for the
  6       purpose of and in conjunction with constructing, reconstructing, enlarg-
  7       ing or remodeling a business, or retail business meeting the requirements
  8       of K.S.A. 74-50,115, and amendments thereto, and machinery and equip-
  9       ment for installation at such business or retail business authorized by
10       subsection (ee) of K.S.A. 1993 Supp. 79-3606a, and amendments thereto;
11       and
12           (8) sales tax exemptions for machinery and equipment used directly
13       and primarily for the purposes of manufacturing, assembling, processing,
14       finishing, storing, warehousing or distributing articles of tangible personal
15       property in this state intended for resale by a manufacturing or processing
16       plant or facility or a storage, warehousing or distribution facility. The
17       secretary of revenue shall provide the completed questionnaires and cop-
18       ies of sales tax exemption certificates to Kansas, Inc. for the preparation
19       of such report.
20           (b) In addition to the above referenced information required with
21       respect to projects described by subsection (a)(6), the secretary of revenue
22       shall provide the completed application for the project sales tax exemption
23       certification submitted by the taxpayer in conjunction with any such pro-
24       ject.
25           Sec. 2. K.S.A. 1997 Supp. 74-8017 is hereby repealed.
26           Sec. 3. This act shall take effect and be in force from and after its
27       publication in the statute book.
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