Brief⁽¹⁾

H.B. 2001, as amended by the Senate Committee, would expand the local sales tax authority of cities in Finney, Reno, Lyon, and Osage Counties for economic development or public infrastructure purposes. All such cities would be granted additional authority of up to 0.75 percent, but any tax imposed to the new authority would be required to sunset after five years.

Russell County would be granted similar additional sales tax authority for economic development or public infrastructure purposes in the amount of exactly 0.5 percent, and Cowley County would be granted similar authority of up to 0.25 percent. The counties would not be required to share the revenue from the taxes imposed under this new authority with the cities located in those counties.

Background

The original bill would have provided a property tax exemption for certain student unions and dormitories. The Senate Committee amended the bill to remove the property tax provisions and insert local sales tax provisions identical to those in S.B. 2 as amended by the Senate Committee of the Whole. The Senate Committee further amended the bill to add the provision relative to Cowley County.

Under current law, cities and counties have general sales tax authority to levy up to 1 percent. Additional authority of up to 1 percent is granted if revenues are earmarked for "health care" purposes. A number of other cities and counties have been granted additional authority for construction of jails, courthouses, and law enforcement centers; and for economic development or public infrastructure purposes.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.