Session of 2000
HOUSE BILL No. 2837
By Representative Kuether
2-2
9 AN ACT regarding heritage tourism and historic preservation; concern-
10 ing loans; amending K.S.A. 75-2716 and repealing the existing section.
11
12 Be it enacted by the Legislature of the State of Kansas:
13 New Section 1. (a) On and after the effective date of this act and
14 prior to July 1, 2000, a state bank or national banking association which
15 extends or renews a heritage tourism or a qualified historic preservation
16 project loan under the provisions of this act to an eligible historic pres-
17 ervation or heritage tourism borrower at an interest rate which is at least
18 one whole percentage point less than the prime interest rate then spec-
19 ified by the bank on such loans with equivalent collateral, and a state bank
20 or national banking association which reduces the rate of interest being
21 charged on any outstanding historic preservation and heritage tourism
22 loan to an eligible historic preservation and heritage tourism borrower by
23 at least one whole percentage point shall receive a credit against its tax
24 liability pursuant to K.S.A. 79-1106 et seq., and amendments thereto, for
25 taxable years commencing after December 31, 2000, to the extent here-
26 inafter provided. Such tax credit shall be allowed for such interest rate
27 reductions upon historic preservation and heritage tourism loans having
28 a total principal amount not exceeding 15% of the amount of such loans
29 reflected in the bank's report of condition filed with the federal deposit
30 insurance corporation as of December 31, 2000.
31 (b) For the purposes of this section, the term "eligible historic pres-
32 ervation and heritage tourism borrower" means any person or historic
33 preservation and heritage tourism entity, group or agency as defined in
34 K.S.A. 75-2716, and amendments thereto, which is located in the state of
35 Kansas and has an existing historic preservation and heritage tourism loan
36 which has been classified as substandard or doubtful by any banking reg-
37 ulator, and which is subject to review by the state historical preservation
38 agency.
39 (c) An interest rate reduction may be applied under the provisions of
40 this section only when the eligible borrower can be reasonably expected
41 to service the principal and interest for the term of such person's loan.
42 (d) The total credit against tax liability shall be the amount by which
43 the interest income to the state bank or national banking association on
2
1 and after the effective date of this act and prior to July 1, 2000, has been
2 reduced on such loans because of such reductions in rates of interest,
3 except that the credit allowed as a result of an interest rate reduction on
4 any one historic preservation and heritage tourism loan shall not exceed
5 an amount equal to 3% per annum on the unpaid principal balance of
6 the loan. The tax credit allowed for any taxable year shall not exceed 1/5
7 of the total tax credit of the bank allowed under this act. Any unused tax
8 credit shall be carried forward as a credit to the bank's tax liability in each
9 subsequent taxable year and shall then be taken into account, subject to
10 the limitation that the credit in any one taxable year may not exceed 1/5
11 of the total tax credit.
12 Sec. 2. K.S.A. 75-2716 is hereby amended to read as follows: 75-
13 2716. As used in this act, unless the context otherwise requires:
14 (a) "Heritage tourism" means tourism by persons from within or out-
15 side of the state of Kansas who come to see historic property included on
16 the state register of historic places or the national register of historic
17 places, excluding property owned by the state or federal government
18 which has been preserved and restored or compatibly constructed in a
19 historic district.
20 (a) (b) "Historic preservation" means the study, identification, pro-
21 tection, restoration and rehabilitation of buildings, structures, objects, dis-
22 tricts, areas and sites significant in the history, architecture, archeology
23 or culture of the state of Kansas, its communities or the nation.
24 (b) (c) "Historic property" means any building, structure, object, dis-
25 trict, area or site that is significant in the history, architecture, archeology
26 or culture of the state of Kansas, its communities or the nation.
27 (c) (d) "Project" includes: (1) Activities directly undertaken by the
28 state or any political subdivision of the state, or any instrumentality
29 thereof;
30 (2) activities undertaken by a person which are supported in whole
31 or in part through grants, subsidies, loans or other forms of financial
32 assistance from the state or any political subdivision of the state, or any
33 instrumentality thereof; and
34 (3) activities involving the issuance of a lease, permit, license, certif-
35 icate or other entitlement for use, to any person by the state or any po-
36 litical subdivision of the state, or any instrumentality thereof.
37 (d) (e) "State or any political subdivision of the state" means the state
38 of Kansas, any office, department, agency, authority, bureau, commission,
39 board, institution, hospital, college or university of the state, or any
40 county, township, city, school district, special district, regional agency,
41 redevelopment agency or any other political subdivision of the state.
42 (e) (f) "Person" means any individual, firm, association, organization,
43 partnership, business, trust, corporation or company.
3
1 (g) "State historical preservation agency" means the state historical
2 society.
3 Sec. 3. K.S.A. 75-2716 is hereby repealed.
4 Sec. 4. This act shall take effect and be in force from and after its
5 publication in the statute book.