CHAPTER 164
HOUSE BILL No. 2591
(Amends Chapter 133)
An Act relating to annual reports; concerning economic
development incentive effective-
ness; amending K.S.A. 2000 Supp. 74-8017 and repealing the existing
section; also re-
pealing K.S.A. 2000 Supp. 74-8017, as amended by section 1 of 2001
House Bill No.
2219.
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. (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
(cc) of K.S.A. 79-3606,
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
and K.S.A. 2000 Supp. 74-8017,
as amended by section 1 of 2001 House Bill No. 2219, are hereby
re-
pealed.
Sec. 3. This act shall take effect
and be in force from and after its
publication in the statute book.
Approved May 9, 2001.
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