CHAPTER 97
SENATE Substitute for HOUSE BILL No. 2208
(Amended by Chapter 154)
An Act concerning tax increment financing and sales tax
revenue bonds; relating to rede-
velopment of certain property located throughout the state;
amending K.S.A. 12-1770a,
12-1774 and 74-8017 and K.S.A. 2002 Supp. 79-3620 and 79-3710 and
repealing the
existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 12-1770a is
hereby amended to read as follows: 12-
1770a. As used in this act, unless the context clearly shows
otherwise:
(a) ``Auto race track facility'' means:
(1) An auto race track facility and
facilities directly related and necessary to the operation of an
auto race
track facility, including, but not limited to, grandstands, suites
and viewing
areas, concessions, souvenir facilities, catering facilities,
visitor and retail
centers, signage and temporary hospitality facilities, but
excluding (2) ho-
tels, motels, restaurants and retail facilities, not directly
related to or nec-
essary to the operation of such facility.
(b) ``Base year assessed valuation''
means the assessed valuation of all
real property within the boundaries of a redevelopment district on
the
date the redevelopment district was established.
(c) ``Blighted area'' means an area
which:
(1) Because of the presence of a majority
of the following factors,
substantially impairs or arrests the development and growth of the
mu-
nicipality or constitutes an economic or social liability or is a
menace to
the public health, safety, morals or welfare in its present
condition and
use:
(A) A substantial number of deteriorated
or deteriorating structures;
(B) predominance of defective or
inadequate street layout;
(C) unsanitary or unsafe conditions;
(D) deterioration of site
improvements;
(E) tax or special assessment delinquency
exceeding the fair market
value of the real property;
(F) defective or unusual conditions of
title including but not limited
to cloudy or defective titles, multiple or unknown ownership
interests to
the property;
(G) improper subdivision or obsolete
platting or land uses;
(H) the existence of conditions which
endanger life or property by
fire or other causes; or
(I) conditions which create economic
obsolescence; or
(2) has been identified by any state or
federal environmental agency
as being environmentally contaminated to an extent that requires a
re-
medial investigation; feasibility study and remediation or other
similar
state or federal action; or
(3) previously was found by resolution of
the governing body to be a
slum or a blighted area under K.S.A. 17-4742 et seq., and
amendments
thereto.
(d) ``Conservation area'' means any
improved area comprising 15%
or less of the land area within the corporate limits of a city in
which 50%
or more of the structures in the area have an age of 35 years or
more,
which area is not yet blighted, but may become a blighted area due
to
the existence of a combination of two or more of the following
factors:
(1) Dilapidation, obsolescence or
deterioration of the structures;
(2) illegal use of individual
structures;
(3) the presence of structures below
minimum code standards;
(4) building abandonment;
(5) excessive vacancies;
(6) overcrowding of structures and
community facilities; or
(7) inadequate utilities and
infrastructure.
(e) ``De minimus'' means an amount less
than 15% of the land area
within a redevelopment district.
(f) ``Developer'' means any person, firm,
corporation, partnership or
limited liability company, other than a city.
(g) ``Eligible area'' means a blighted
area, conservation area, enter-
prise zone, historic theater or, major
tourism area or a major commercial
entertainment and tourism area as determined by the
secretary.
(h) ``Enterprise zone'' means an area
within a city that was designated
as an enterprise zone prior to July 1, 1992, pursuant to K.S.A.
12-17,107
through 12-17,113, and amendments thereto, prior to its repeal and
the
conservation, development or redevelopment of the area is necessary
to
promote the general and economic welfare of such city.
(i) ``Environmental increment'' means the
increment determined
pursuant to subsection (b) of K.S.A. 12-1771a, and amendments
thereto.
(j) ``Environmentally contaminated area''
means an area of land hav-
ing contaminated groundwater or soil which is deemed
environmentally
contaminated by the department of health and environment or the
United
States environmental protection agency.
(k) ``Feasibility study'' means a study
which shows whether a rede-
velopment or special bond project's benefits and tax
increment revenue
and other available revenues under K.S.A. 12-1774 (a)(1), and
amend-
ments thereto, are expected to exceed or be sufficient to
pay for the
redevelopment or special bond project costs and the
effect, if any, the
redevelopment or special bond project will have on any
outstanding spe-
cial obligation bonds as authorized pursuant to subsection
(a)(1)(D) of
K.S.A. 12-1774, and amendments thereto.
(l) ``Historic theater'' means a building
constructed prior to 1940
which was constructed for the purpose of staging entertainment,
includ-
ing motion pictures, vaudeville shows or operas, that is operated
by a
nonprofit corporation and is designated by the state historic
preservation
officer as eligible to be on the Kansas register of historic places
or is a
member of the Kansas historic theatre association.
(m) ``Historic theater sales tax
increment'' means the amount of state
and local sales tax revenue imposed pursuant to K.S.A. 12-187 et
seq., 79-
3601 et seq. and 79-3701 et seq., and amendments
thereto, collected from
taxpayers doing business within the historic theater that is in
excess of
the amount of such taxes collected prior to the designation of the
building
as a historic theater for purposes of this act.
(n) ``Major tourism area'' means an area
for which the secretary has
made a finding the capital improvements costing not less than
$100,000,000 will be built in the state to construct an auto race
track
facility.
(o) ``Real property taxes'' means all
taxes levied on an ad valorem basis
upon land and improvements thereon.
(p) ``Redevelopment project area'' or
``project area'' means an area
designated by a city within a redevelopment district.
(q) ``Redevelopment project costs'' means
those costs necessary to
implement a redevelopment plan, including, but not limited to costs
in-
curred for:
(1) Acquisition of property within the
redevelopment project area;
(2) payment of relocation assistance;
(3) site preparation including utility
relocations;
(4) sanitary and storm sewers and lift
stations;
(5) drainage conduits, channels
and, levees and river walk canal
fa-
cilities;
(6) street grading, paving, graveling,
macadamizing, curbing, gutter-
ing and surfacing;
(7) street light fixtures, connection and
facilities;
(8) underground gas, water, heating and
electrical services and con-
nections located within the public right-of-way;
(9) sidewalks and pedestrian underpasses
or overpasses;
(10) drives and driveway approaches
located within the public right-
of-way;
(11) water mains and extensions;
(12) plazas and arcades;
(13) parking facilities;
(14) landscaping and plantings,
fountains, shelters, benches, sculp-
tures, lighting, decorations and similar amenities; and
(15) all related expenses to redevelop
and finance the redevelopment
project.
Redevelopment project costs shall not include
costs incurred in con-
nection with the construction of buildings or other structures to
be owned
by or leased to a developer, however, the ``redevelopment project
costs''
shall include costs incurred in connection with the construction of
build-
ings or other structures to be owned or leased to a developer which
in-
cludes an auto race track facility or is in a redevelopment
district including
some or all of the land and buildings comprising a state mental
institution
closed pursuant to section 2 of chapter 219 of the 1995 Session
Laws of
Kansas.
(r) ``Redevelopment district'' means the
specific area declared to be
an eligible area in which the city may develop one or more
redevelopment
projects.
(s) ``Redevelopment district plan'' or
``district plan'' means the pre-
liminary plan that identifies all of the proposed redevelopment
project
areas and identifies in a general manner all of the buildings,
facilities and
improvements in each that are proposed to be constructed or
improved
in each redevelopment project area.
(t) ``Redevelopment project'' means the
approved project to imple-
ment a project plan for the development of the established
redevelop-
ment district.
(u) ``Redevelopment project plan'' or
``project plan'' means the plan
adopted by a municipality for the development of a redevelopment
pro-
ject or projects which conforms with K.S.A. 12-1772, and
amendments
thereto, in a redevelopment district.
(v) ``Secretary'' means the secretary of
commerce and housing.
(w) ``Substantial change'' means, as
applicable, a change wherein the
proposed plan or plans differ substantially from the intended
purpose for
which the district plan or project plan was approved.
(x) ``Tax increment'' means that amount
of real property taxes col-
lected from real property located within the redevelopment district
that
is in excess of the amount of real property taxes which is
collected from
the base year assessed valuation.
(y) ``Taxing subdivision'' means the
county, city, unified school district
and any other taxing subdivision levying real property taxes, the
territory
or jurisdiction of which includes any currently existing or
subsequently
created redevelopment district.
(z) ``Special bond project'' means a
project with at least a $50,000,000
capital investment and $50,000,000 in projected gross annual
sales reve-
nues or for areas outside of metropolitan statistical areas, as
defined by
the federal office of management and budget as of June 30, 1999,
the
secretary finds the project meets the requirements of subsection
(g) and
would be of regional or statewide importance, but a ``special
bond project''
shall not include a project for a gambling casino.
(aa) ``Marketing study'' means a study
conducted to examine the im-
pact of the redevelopment or special bond project upon similar
businesses
in the projected market area.
(bb) ``Projected market area'' means
any area within the state in
which the redevelopment or special bond project is projected to
have a
substantial fiscal or market impact upon businesses in such
area.
(cc) ``River walk canal facilities''
means a canal and related water
features located adjacent to a river which flows through a major
com-
mercial entertainment and tourism area and facilities related or
contig-
uous thereto, including, but not limited to pedestrian walkways
and prom-
enades, landscaping and parking facilities.
(dd) ``Commence work'' means the
manifest commencement of actual
operations on the development site, such as, erecting a
building, excavat-
ing the ground to lay a foundation or a basement or work of like
descrip-
tion which a person with reasonable diligence can see and
recognize as
being done with the intention and purpose to continue work until
the
project is completed.
(ee) ``Major commercial entertainment
and tourism area'' shall in-
clude, but not be limited to, a major multi-sport athletic
complex.
(ff) ``Major multi-sport athletic
complex'' means an athletic complex
that is utilized for the training of athletes, the practice of
athletic teams,
the playing of athletic games or the hosting of events. Such
project may
include playing fields, parking lots and other
developments.
New Sec. 2. (a) The governing body
of a city may establish one or
more special bond projects in any area within such city. The
special bond
projects shall be eligible for financing by special obligation
bonds payable
from revenues described by subsection (a)(1)(D) of K.S.A. 12-1774,
and
amendments thereto. Each special bond project shall first be
approved
by the secretary. The secretary may approve a special bond project
located
in a redevelopment district established by a city prior to the
effective date
of this act. A special bond project shall not be granted to any
business
that proposes to relocate its business from another area of the
state into
such city, for the purpose of consideration for a special bond
project and
shall not receive any of the benefits provided by K.S.A. 12-1770
et seq.,
and amendments thereto. A special bond project shall not be
approved
by the secretary if the marketing study required by section 3, and
amend-
ments thereto, indicates a substantial negative impact upon
businesses in
the project market area or the granting of such project would cause
a
default in the payment of any outstanding special obligation bonds
as
authorized pursuant to subsection (a)(1)(D) of K.S.A. 12-1774,
and
amendments thereto.
(b) The maximum maturity of special
obligation bonds payable pri-
marily from revenues described by subsection (a)(1)(D) of K.S.A.
12-
1774, and amendments thereto, to finance special bond projects
pursuant
to this section shall not exceed 20 years.
(c) Any redevelopment project plan in a
redevelopment district lo-
cated in the city of Wichita that is eligible for benefits provided
by K.S.A.
12-1774 et seq., and amendments thereto, and includes an
arena or arena-
like structure shall be subject to approval by a vote by the
citizens of
Wichita at an election held for this purpose prior to approval by
the
secretary of commerce and housing.
New Sec. 3. (a) Any city proposing
to undertake a special bond pro-
ject established pursuant to section 2, and amendments thereto,
shall
prepare a project plan in consultation with the planning commission
of
the city. The project plan shall include:
(1) A summary of the feasibility study
done as defined in K.S.A. 12-
1770a, and amendments thereto, which will be an open record;
(2) a summary of the marketing study done
as defined in K.S.A. 12-
1770a, and amendments thereto, which will be an open record;
(3) a reference to the district plan
established under K.S.A. 12-1771,
and amendments thereto, that identifies the project area that is
set forth
in the project plan that is being considered;
(4) a description and map of the location
of the facility that is the
subject of the special bond project;
(5) the relocation assistance plan
required by K.S.A. 12-1777, and
amendments thereto;
(6) a detailed description of the
buildings and facilities proposed to
be constructed or improved; and
(7) any other information the governing
body deems necessary to
advise the public of the intent of the special bond project
plan.
(b) Resolution requirements. A
copy of the project plan shall be de-
livered to the board of county commissioners of the county and the
board
of education of any school district levying taxes on property
subject to the
special bond project. Upon a finding by the planning commission of
the
city that the project plan is consistent with the intent of the
comprehen-
sive plan for the development of the city, the governing body of
the city
shall adopt a resolution stating that the city is considering the
adoption
of the project plan. Such resolution shall:
(1) Give notice that a public hearing
will be held to consider the
adoption of the project plan and fix the date, hour and place of
such
public hearing;
(2) describe the boundaries of the area
subject to the special bond
project; and
(3) state that the project plan,
including a summary of the feasibility
study, relocation assistance plan and financial guarantees of the
prospec-
tive developer and a description and map of the area to be
developed are
available for inspection during regular office hours in the office
of the
city clerk.
(c) (1) Hearing. The date
fixed for the public hearing shall be not
less than 30 nor more than 70 days following the date of the
adoption of
the resolution fixing the date of the hearing.
(2) A copy of the resolution providing
for the public hearing shall be
by certified mail, return receipt requested sent to the board of
county
commissioners of the county and the board of education of any
school
district levying taxes on property subject to the special bond
project. The
resolution shall be published once in the official city newspaper
not less
than one week nor more than two weeks preceding the date fixed for
the
public hearing. A description in sufficient detail to advise the
reader of
the particular proposed special bond project shall be published
with the
resolution.
(3) At the public hearing, a
representative of the city shall present
the city's proposed project plan. Following the presentation of the
project
plan, all interested persons shall be given an opportunity to be
heard. The
governing body for good cause shown may recess such hearing to a
time
and date certain, which shall be fixed in the presence of persons
in at-
tendance at the hearing.
(d) The public hearing records and
feasibility study shall be subject
to the open records act, K.S.A. 45-215, and amendments thereto.
(e) Posthearing procedure.
Following the public hearing, the govern-
ing body may adopt the project plan by ordinance passed upon a 2/3
vote.
(f) Any substantial changes as defined in
K.S.A. 12-1770a, and
amendments thereto, to the project plan as adopted shall be subject
to a
public hearing following publication of notice thereof at least
twice in the
official city newspaper.
(g) Any project shall be completed within
20 years from the date of
the approval of the project plan. Kansas resident employees shall
be given
priority consideration for employment in construction projects
located in
a special bond project area.
(h) Any developer of a special bond
project shall commence work on
such project within two years from the date of adoption of the
project
plan. Should the developer fail to commence work on the special
bond
project within the two-year period, funding for such project shall
cease
and the developer of such project shall have one year to appeal to
the
secretary for reapproval of such project and the funding for it.
Should
the project be reapproved, the two-year period for commencement
shall
apply.
(i) The provisions of this act regarding
special bond projects shall
expire on and after July 1, 2007.
Sec. 4. K.S.A. 12-1774 is hereby
amended to read as follows: 12-
1774. (a) (1) Any city shall have the power to issue special
obligation bonds
in one or more series to finance the undertaking of any
redevelopment
project in accordance with the provisions of this act. Such special
obli-
gation bonds shall be made payable, both as to principal and
interest:
(A) From tax increments allocated to, and
paid into a special fund of
the city under the provisions of K.S.A. 12-1775, and amendments
thereto;
(B) from revenues of the city derived
from or held in connection with
the undertaking and carrying out of any redevelopment project or
projects
under this act including historic theater sales tax increments and
envi-
ronmental increments;
(C) from any private sources,
contributions or other financial assis-
tance from the state or federal government;
(D) from a pledge of a portion or all of
the revenue received by the
city from transient guest, sales and use taxes collected pursuant
to K.S.A.
12-1696 et seq., 79-3601 et seq., 79-3701 et
seq. and 12-187 et seq., and
amendments thereto, and which are collected from taxpayers doing
busi-
ness within that portion of the city's redevelopment district
established
pursuant to K.S.A. 12-1771, and amendments thereto, occupied by a
re-
development project if there first is a finding by the secretary of
com-
merce and housing that based upon the feasibility study the
redevelop-
ment project will create a major tourism area for the state or if
the project
is the restoration of a historic theater as defined in subsection
(l) of K.S.A.
12-1770a, and amendments thereto, or the project has been
designated
as a special bond project as defined in subsection (z) of K.S.A.
12-1770a,
and amendments thereto;
(E) (i) from a pledge of a portion
or all increased revenue received
by the city from franchise fees collected from utilities and other
busi-
nesses using public right-of-way within the redevelopment district;
(ii)
from a pledge of a portion or all of the revenue received by the
city from
sales taxes collected pursuant to K.S.A. 12-187, and amendments
thereto;
or
(F) by any combination of these methods
except that for a project
which has been designated as a special bond project as defined
in subsec-
tion (z) of K.S.A. 12-1770a and amendments thereto, 100% of city
and
county sales taxes collected pursuant to K.S.A. 12-187, and
amendments
thereto, shall be pledged for such project except for amounts
committed
to other use by election of voters prior to the effective date
of this act.
The city may pledge such revenue to the
repayment of such special
obligation bonds prior to, simultaneously with, or subsequent to
the is-
suance of such special obligation bonds.
(2) Bonds issued under paragraph (1) of
subsection (a) shall not be
general obligations of the city, nor in any event shall they give
rise to a
charge against its general credit or taxing powers, or be payable
out of
any funds or properties other than any of those set forth in
paragraph (1)
of this subsection and such bonds shall so state on their face.
(3) Bonds issued under the provisions of
paragraph (1) of this sub-
section shall be special obligations of the city and are declared
to be
negotiable instruments. They shall be executed by the mayor and
clerk
of the city and sealed with the corporate seal of the city. All
details per-
taining to the issuance of such special obligation bonds and terms
and
conditions thereof shall be determined by ordinance of the city.
All special
obligation bonds issued pursuant to this act and all income or
interest
therefrom shall be exempt from all state taxes except inheritance
taxes.
Such special obligation bonds shall contain none of the recitals
set forth
in K.S.A. 10-112, and amendments thereto. Such special obligation
bonds
shall, however, contain the following recitals, viz., the authority
under
which such special obligation bonds are issued, they are in
conformity
with the provisions, restrictions and limitations thereof, and that
such
special obligation bonds and the interest thereon are to be paid
from the
money and revenue received as provided in paragraph (1) of this
subsec-
tion.
(b) (1) Subject to the provisions
of paragraph (2) of this subsection,
any city shall have the power to issue full faith and credit tax
increment
bonds to finance the undertaking of any redevelopment project in
ac-
cordance with the provisions of K.S.A. 12-1770 et seq., and
amendments
thereto other than a project that will create a major tourism area
or result
in the renovation of an historic theater. Such full faith and
credit tax
increment bonds shall be made payable, both as to principal and
interest:
(A) From the revenue sources identified in paragraph (1)(A), (B),
(C),
(D) and (E) of subsection (a) or by any combination of these
sources; and
(B) subject to the provisions of paragraph (2) of this subsection,
from a
pledge of the city's full faith and credit to use its ad valorem
taxing au-
thority for repayment thereof in the event all other authorized
sources of
revenue are not sufficient.
(2) Except as provided in paragraph (3)
of this subsection, before the
governing body of any city proposes to issue full faith and credit
tax in-
crement bonds as authorized by this subsection, the feasibility
study re-
quired by K.S.A. 12-1772, and amendments thereto, shall
demonstrate
that the benefits derived from the project will exceed the cost and
that
the income therefrom will be sufficient to pay the costs of the
project.
No full faith and credit tax increment bonds shall be issued unless
the
governing body states in the resolution required by K.S.A. 12-1772,
and
amendments thereto, that it may issue such bonds to finance the
proposed
redevelopment project. The governing body may issue the bonds
unless
within 60 days following the date of the public hearing on the
proposed
project plan a protest petition signed by 3% of the qualified
voters of the
city is filed with the city clerk in accordance with the provisions
of K.S.A.
25-3601 et seq., and amendments thereto. If a sufficient
petition is filed,
no full faith and credit tax increment bonds shall be issued until
the
issuance of the bonds is approved by a majority of the voters
voting at an
election thereon. Such election shall be called and held in the
manner
provided by the general bond law. The failure of the voters to
approve
the issuance of full faith and credit tax increment bonds shall not
prevent
the city from issuing special obligation bonds in accordance with
K.S.A.
12-1774, and amendments thereto. No such election shall be held in
the
event the board of county commissioners or the board of education
de-
termines, as provided in K.S.A. 12-1771, and amendments thereto,
that
the proposed redevelopment district will have an adverse effect on
the
county or school district.
(3) As an alternative to paragraph (2) of
this subsection, any city which
adopts a project plan but does not state its intent to issue full
faith and
credit tax increment bonds in the resolution required by K.S.A.
12-1772,
and amendments thereto, and has not acquired property in the
redevel-
opment project area may issue full faith and credit tax increment
bonds
if the governing body of the city adopts a resolution stating its
intent to
issue the bonds and the issuance of the bonds is approved by a
majority
of the voters voting at an election thereon. Such election shall be
called
and held in the manner provided by the general bond law. The
failure of
the voters to approve the issuance of full faith and credit tax
increment
bonds shall not prevent the city from issuing special obligation
bonds
pursuant to paragraph (1) of subsection (a). Any project plan
adopted by
a city prior to the effective date of this act in accordance with
K.S.A. 12-
1772, and amendments thereto, shall not be invalidated by any
require-
ments of this act.
(4) During the progress of any
redevelopment project in which the
redevelopment project costs will be financed, in whole or in part,
with
the proceeds of full faith and credit tax increment bonds, the city
may
issue temporary notes in the manner provided in K.S.A. 10-123,
and
amendments thereto, to pay the redevelopment project costs for the
pro-
ject. Such temporary notes shall not be issued and the city shall
not ac-
quire property in the redevelopment project area until the
requirements
of paragraph (2) or (3) of this subsection, whichever is
applicable, have
been met.
(5) Full faith and credit tax increment
bonds issued under this sub-
section shall be general obligations of the city and are declared
to be
negotiable instruments. They shall be issued in accordance with the
gen-
eral bond law. All such bonds and all income or interest therefrom
shall
be exempt from all state taxes except inheritance taxes. The amount
of
the full faith and credit tax increment bonds issued and
outstanding which
exceeds 3% of the assessed valuation of the city shall be within
the bonded
debt limit applicable to such city.
(6) Any city issuing special obligation
bonds under the provisions of
this act may refund all or part of such issue pursuant to the
provisions of
K.S.A. 10-116a, and amendments thereto.
(c) Any increment in ad valorem property
taxes resulting from a re-
development project in the established redevelopment district
under-
taken in accordance with the provisions of this act, shall be
apportioned
to a special fund for the payment of the redevelopment project
costs,
including the payment of principal and interest on any special
obligation
bonds or full faith and credit tax increment bonds issued to
finance such
project pursuant to this act and may be pledged to the payment of
prin-
cipal and interest on such bonds.
Sec. 5. K.S.A. 2002 Supp. 79-3620
is hereby amended to read as
follows: 79-3620. (a) All revenue collected or received by the
director of
taxation from the taxes imposed by this act shall be remitted to
the state
treasurer in accordance with the provisions of K.S.A. 75-4215,
and
amendments thereto. Upon receipt of each such remittance, the
state
treasurer shall deposit the entire amount in the state treasury,
less
amounts withheld as provided in subsection (b) and amounts credited
as
provided in subsection (c) and (d), to the credit of the state
general fund.
(b) A refund fund, designated as ``sales
tax refund fund'' not to exceed
$100,000 shall be set apart and maintained by the director from
sales tax
collections and estimated tax collections and held by the state
treasurer
for prompt payment of all sales tax refunds including refunds
authorized
under the provisions of K.S.A. 79-3635, and amendments thereto.
Such
fund shall be in such amount, within the limit set by this section,
as the
director shall determine is necessary to meet current refunding
require-
ments under this act. In the event such fund as established by this
section
is, at any time, insufficient to provide for the payment of refunds
due
claimants thereof, the director shall certify the amount of
additional funds
required to the director of accounts and reports who shall promptly
trans-
fer the required amount from the state general fund to the sales
tax refund
fund, and notify the state treasurer, who shall make proper entry
in the
records.
(c) (1) The state treasurer shall
credit 5/98 of the revenue collected
or received from the tax imposed by K.S.A. 79-3603, and
amendments
thereto, at the rate of 4.9%, and deposited as provided in
subsection (a),
exclusive of amounts credited pursuant to subsection (d), in the
state
highway fund.
(2) The state treasurer shall credit
5/104 of the revenue collected or
received from the tax imposed by K.S.A. 79-3603, and amendments
thereto, at the rate of 5.2%, and deposited as provided in
subsection (a),
exclusive of amounts credited pursuant to subsection (d), in the
state
highway fund.
(3) The state treasurer shall credit
5/106 of the revenue collected or
received from the tax imposed by K.S.A. 79-3603, and amendments
thereto, at the rate of 5.3%, and deposited as provided in
subsection (a),
exclusive of amounts credited pursuant to subsection (d), in the
state
highway fund.
(4) The state treasurer shall credit 1/20
of the revenue collected and
received from the tax imposed by K.S.A. 79-3603, and amendments
thereto, at the rate of 5%, and deposited as provided by subsection
(a),
exclusive of amounts credited pursuant to subsection (d), in the
state
highway fund.
(d) The state treasurer shall credit all
revenue collected or received
from the tax imposed by K.S.A. 79-3603, and amendments thereto,
as
certified by the director, from taxpayers doing business within
that por-
tion of a redevelopment district occupied by a redevelopment
project or
taxpayers doing business with such entity financed by a special
bond
project as defined in K.S.A. 12-1770a, and amendments
thereto, that was
determined by the secretary of commerce and housing to be of
statewide
as well as local importance or will create a major tourism area for
the
state or the project was designated as a special bond
project as defined
in K.S.A. 12-1770a, and amendments thereto, to the city bond
finance
fund, which fund is hereby created. The provisions of this
subsection shall
expire when the total of all amounts credited hereunder and under
sub-
section (d) of K.S.A. 79-3710, and amendments thereto, is
sufficient to
retire the special obligation bonds issued for the purpose of
financing all
or a portion of the costs of such redevelopment or special
bond project.
New Sec. 6. Notwithstanding any
other provisions of law to the con-
trary, copies of all retailers' sales, use and transient guest tax
returns filed
with the director of the department of revenue in connection with a
re-
development project area or special bond project for which sales,
use and
transient guest tax revenues are pledged or otherwise intended to
be used
in whole or in part for the payment of bonds issued to finance
redevel-
opment or special bond project costs in such redevelopment or
special
bond project area, shall be provided by the director of the
department of
revenue to the bond trustee, escrow agent or paying agent for such
bonds
upon the written request of the municipality within 15 days of
receipt by
the director of the department of revenue. The bond trustee,
escrow
agent or paying agent shall keep such retailers' sales, use and
transient
guest tax returns and the information contained therein
confidential, but
may use such information for purposes of allocating and depositing
such
sales, use and transient guest tax revenues in connection with the
bonds
used to finance redevelopment or special bond project costs in such
re-
development or special bond project area. Except as otherwise
provided
herein, the sales, use and transient guest tax returns received by
the bond
trustee, escrow agent or paying agent shall be subject to the
provisions
of K.S.A. 79-3614, and amendments thereto.
Sec. 7. K.S.A. 74-8017 is hereby
amended to read as follows: 74-
8017. 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
eco-
nomic development within this state and submit the same to the
standing
committees on taxation and economic development of the house and
as-
sessment and taxation and commerce of the senate at the beginning
of
each regular session of the legislature. The secretary of revenue,
in con-
sultation 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
prep-
aration of such annual report. The questionnaire shall require
respon-
dents to indicate utilization of the following credits and
exemptions:
(a) Income tax credits authorized under
the provisions of the job ex-
pansion and investment credit act of 1976 and acts amendatory
thereof
and supplemental thereto;
(b) income tax credits for expenditures
in research and development
activities authorized by K.S.A. 79-32,182, and amendments
thereto;
(c) 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;
(d) income tax credits for cash
investment in certified Kansas venture
capital companies authorized by K.S.A. 74-8304, and amendments
thereto;
(e) income tax credits for cash
investment in certified local seed cap-
ital pools authorized by K.S.A. 74-8401, and amendments
thereto;
(f) income tax credits for investment in
the training and education of
qualified firms' employees authorized by K.S.A. 74-50,132, and
amend-
ments thereto;
(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
(h) 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.; and
(i) special obligation bonds
authorized by K.S.A. 12-1774, and
amendments thereto.
Sec. 8. K.S.A. 2002 Supp. 79-3710
is hereby amended to read as
follows: 79-3710. (a) All revenue collected or received by the
director
under the provisions of this act shall be remitted to the state
treasurer in
accordance with the provisions of K.S.A. 75-4215, and
amendments
thereto. Upon receipt of each such remittance, the state treasurer
shall
deposit the entire amount in the state treasury, less amounts set
apart as
provided in subsection (b) and amounts credited as provided in
subsection
(c) and (d), to the credit of the state general fund.
(b) A revolving fund, designated as
``compensating tax refund fund''
not to exceed $10,000 shall be set apart and maintained by the
director
from compensating tax collections and estimated tax collections and
held
by the state treasurer for prompt payment of all compensating tax
refunds.
Such fund shall be in such amount, within the limit set by this
section,
as the director shall determine is necessary to meet current
refunding
requirements under this act.
(c) (1) The state treasurer shall
credit 5/98 of the revenue collected
or received from the tax imposed by K.S.A. 79-3703, and
amendments
thereto, at the rate of 4.9%, and deposited as provided in
subsection (a),
exclusive of amounts credited pursuant to subsection (d), in the
state
highway fund.
(2) The state treasurer shall credit
5/104 of the revenue collected or
received from the tax imposed by K.S.A. 79-3703, and amendments
thereto, at the rate of 5.2%, and deposited as provided in
subsection (a),
exclusive of amounts credited pursuant to subsection (d), in the
state
highway fund.
(3) The state treasurer shall credit
5/106 of the revenue collected or
received from the tax imposed by K.S.A. 79-3703, and amendments
thereto, at the rate of 5.3%, and deposited as provided in
subsection (a),
exclusive of amounts credited pursuant to subsection (d), in the
state
highway fund.
(4) The state treasurer shall credit 1/20
of the revenue collected or
received from the tax imposed by K.S.A. 79-3703, and amendments
thereto, at the rate of 5%, and deposited as provided by subsection
(a),
exclusive of amounts credited pursuant to subsection (d), in the
state
highway fund.
(d) The state treasurer shall credit all
revenue collected or received
from the tax imposed by K.S.A. 79-3703, and amendments thereto,
as
certified by the director, from taxpayers doing business within
that por-
tion of a redevelopment district occupied by a redevelopment
project that
was determined by the secretary of commerce and housing to be of
state-
wide as well as local importance or will create a major tourism
area for
the state as defined in K.S.A. 12-1770a, and amendments thereto, to
the
city bond finance fund created by subsection (d) of K.S.A. 79-3620,
and
amendments thereto. The provisions of this subsection shall expire
when
the total of all amounts credited hereunder and under subsection
(d) of
K.S.A. 79-3620, and amendments thereto, is sufficient to retire the
special
obligation bonds issued for the purpose of financing all or a
portion of
the costs of such redevelopment project.
This subsection shall not apply to a
project designated as a special bond
project as defined in subsection (z) of K.S.A. 12-1770a, and
amendments
thereto.
Sec. 9. K.S.A. 12-1770a, 12-1774 and 74-8017 and
K.S.A. 2002 Supp.
79-3620 and 79-3710 are hereby repealed.
Sec. 10. This act shall take effect and be in
force from and after its
publication in the Kansas register.
Approved April 18, 2003.
Published in the Kansas Register May 1, 2003.
__________