Brief ⁽¹⁾

SB 146 would temporarily expand the sales tax exemption provisions of the Job Investment Credit Act to allow a sales tax exemption for qualified retail businesses located outside of a city in a county having a population of 10,000 or less. This provision would apply to retail businesses which locate or expand prior to July 1, 2004. Under current law, certain retail businesses may qualify for the sales tax exemption but they must be located within a city having a population of 2,500 or less.

The bill would also prohibit a local government from having an ordinance or resolution controlling the amount of rent charged for leasing private residential or commercial property.

Background

The Senate Committee held hearings on SB 146, at which time Senator Schmidt, the bill's primary sponsor, and a representative of the Coffey County Economic Development Department appeared as proponents. At that time, the Committee was told that there are 62 Kansas counties with populations under 10,000 based on estimated figures from the 2000 Census.

The Senate Committee of the Whole amended the bill by providing a sunset of July 1, 2004 for the expansion of the sales tax exemption to qualified businesses located outside of a city in a county with a population of 10,000 or less.

The House Committee amended SB 146 to prohibit a local government from having an ordinance or resolution controlling the amount of rent charged for leasing private residential or commercial property.

The Division of the Budget reports that passage of SB 146 would result in a reduction in State General Fund revenue of $368,000 and a reduction in State Highway Fund revenue of $20,000 in FY 2002.

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/fulltext.cgi