CHAPTER 133 HOUSE BILL No. 2219 (Amended by Chapter 164) An Act relating to annual reports concerning certain tax incentive effectiveness; amending
K.S.A. 2000 Supp. 74-8017 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2000 Supp. 74-8017 is hereby amended to read as
follows: 74-8017. It (a) On and after January 1, 2003, it shall be the duty
of Kansas, Inc. to prepare an annual report evaluating the cost effective-
ness of the various income tax credits and sales tax exemptions enacted
to encourage economic development within this state and submit the
same to the standing committees on taxation and economic development
of the house and assessment and taxation and commerce of the senate at
the beginning of each regular session of the legislature. The secretary of
revenue shall develop a questionnaire on the utilization of state income
tax credits and sales tax exemptions that shall be completed by all cor-
porate taxpayers subject to state income tax that shall be submitted to the
department of revenue concurrently with the filing of an annual corporate
income tax return. The questionnaire shall require respondents to indi-
cate utilization of the following credits and exemptions:

      (1) Income tax credits authorized under the provisions of the job
expansion and investment credit act of 1976 and acts amendatory thereof
and supplemental thereto;

      (2) income tax credits for expenditures in research and development
activities authorized by K.S.A. 79-32,182 and 79-32,182a, and amend-
ments thereto;

      (3) income and financial institutions privilege tax credits for cash in-
vestment in stock of Kansas Venture Capital, Inc. authorized by K.S.A.
74-8205 and 74-8206, and amendments thereto;

      (4) income tax credits for cash investment in certified Kansas venture
capital companies authorized by K.S.A. 74-8304, and amendments
thereto;

      (5) income tax credits for cash investment in certified local seed cap-
ital pools authorized by K.S.A. 74-8401, and amendments thereto;

      (6) income tax credits for investment in the training and education of
qualified firms' employees authorized by K.S.A. 2000 Supp. 74-50,132,
and amendments thereto;

      (7) sales tax exemptions for property or services purchased for the
purpose of and in conjunction with constructing, reconstructing, enlarg-
ing or remodeling a business, or retail business meeting the requirements
of K.S.A. 74-50,115, and amendments thereto, and machinery and equip-
ment for installation at such business or retail business authorized by
subsection (ee) of K.S.A. 1993 Supp. 79-3606a, and amendments thereto;
and

      (8) sales tax exemptions for machinery and equipment used directly
and primarily for the purposes of manufacturing, assembling, processing,
finishing, storing, warehousing or distributing articles of tangible personal
property in this state intended for resale by a manufacturing or processing
plant or facility or a storage, warehousing or distribution facility. The
secretary of revenue shall provide the completed questionnaires and cop-
ies of sales tax exemption certificates to Kansas, Inc. for the preparation
of such report.

      (b) Prior to the commencement of the 2002 legislative session, Kansas,
Inc. and the Kansas department of revenue shall agree upon procedures
for the purpose of disclosure of corporate and individual taxpayer infor-
mation to fulfill the purposes of this section and protect sensitive taxpayer
information to the extent possible consistent with this section. Such pro-
cedures shall be submitted to an appropriate committee at the commence-
ment of such session in the form of a proposed bill.

 Sec.  2. K.S.A. 2000 Supp. 74-8017 is hereby repealed.
 Sec.  3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 19, 2001.
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