SESSION OF 2002
SUPPLEMENTAL NOTE
ON HOUSE BILL NO. 2586
As Amended by Senate Committee on
Brief*
HB 2586 would provide an income tax credit for tax years 2002 through 2021 equal to the total amount attributable to the retirement of indebtedness authorized by a single city port authority established before January 1, 2002. The amount of the tax credit allowed for any one fiscal year would be limited to $500,000, and any unused credit could be carried forward to future tax years.
The Director of Accounts and Reports would be required to issue a warrant to such taxpayer for the amount of the credit after the appropriate amount of credit has been certified by the Secretary of Revenue. This warrant mechanism would be in lieu of an actual tax credit and would be deemed to be a capital contribution.
Background
The
House approved its version of the bill during the 2001 Session. The
Special Committee on Assessment and Taxation also recommended that
the 2002 Legislature enact the bill.
The
House Committee amendment placed a 20-year limitation on the tax
credits.
The
Senate Committee amendments were requested by WATCO
Companies.
The
Governor’s Budget does not contain adjustments for the fiscal
impact associated with the bill, which would reduce State General
Fund receipts as follows:
|
($ in millions) |
|
|
|
|
|
FY 2003 |
$0.5 |
|
FY 2004 |
0.5 |
|
FY 2005 |
0.5 |
|
FY 2006 |
0.5 |
|
FY 2007 |
0.5 |
|
Five-Year Total |
$2.5 |
|
|
|
*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.kslegislature.org/cgi-bin/index.cgi