CHAPTER 99
SENATE BILL No. 129
An Act relating to annual reports concerning certain
tax incentive effectiveness;
amending K.S.A. 2001 Supp. 74-8017 and repealing the
existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2001 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
effectiveness
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 rev-
enue, in consultation with the president of Kansas, Inc.,
shall develop a
questionnaire on the utilization of state income tax credits and
sales tax
exemptions that shall be completed by all corporate 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
secretary shall provide the completed questionnaires to Kansas,
Inc. for
use in the preparation of such annual report. The
questionnaire shall
require respondents to indicate utilization of the following
credits and
exemptions:
(1) (a) 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) (b) income
tax credits for expenditures in research and develop-
ment activities authorized by K.S.A. 79-32,182, and amendments
thereto;
(3) (c) income
and financial institutions privilege tax credits for cash
investment in stock of Kansas Venture Capital, Inc. authorized by
K.S.A.
74-8205 and 74-8206, and amendments thereto;
(4) (d) income
tax credits for cash investment in certified Kansas ven-
ture capital companies authorized by K.S.A. 74-8304, and
amendments
thereto;
(5) (e) income
tax credits for cash investment in certified local seed
capital pools authorized by K.S.A. 74-8401, and amendments
thereto;
(6) (f) income
tax credits for investment in the training and education
of qualified firms' employees authorized by K.S.A. 2001 Supp.
74-50,132,
and amendments thereto;
(7) (g) 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 (cc) of K.S.A. 79-3606, and amendments thereto; and
(8) (h) sales tax
exemptions for machinery and equipment used di-
rectly and primarily for the purposes of manufacturing, assembling,
proc-
essing, 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 fa-
cility. The secretary of revenue shall provide the completed
question-
naires and copies of sales tax exemption certificates to Kansas,
Inc. for
the preparation of such report.
(b) Prior to the commencement of
the 2002 legislative session, Kan-
sas, Inc. and the Kansas department of revenue shall agree
upon proce-
dures for the purpose of disclosure of corporate and
individual taxpayer
information to fulfill the purposes of this section and
protect sensitive
taxpayer information to the extent possible consistent with
this section.
Such procedures shall be submitted to an appropriate
committee at the
commencement of such session in the form of a proposed
bill.
Sec. 2. K.S.A. 2001 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 24, 2002.
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