Kansas 2025-2026 Regular Session

Kansas House Bill HB2211

Introduced
2/3/25  

Caption

Providing funding for STAR bond districts to replace lost food sales tax revenue.

Impact

The implementation of HB2211 is expected to have significant implications for local economic development in Kansas. By compensating for lost revenues, the bill aims to support the economic stability of STAR bond districts, which often rely on sales tax to fund municipal services and infrastructure. This act also creates the STAR bonds food sales tax revenue replacement fund within the state treasury, ensuring a dedicated source for the financial transfers necessary for the districts. The provision of ongoing assistance is seen as a means to sustain local business environments while encouraging potential future developments in targeted areas.

Summary

House Bill 2211 establishes a framework to replace lost food sales tax revenue for STAR bond districts that were created before December 31, 2022. It is designed to assist local governments by providing funding that compensates for reductions in sales tax revenues associated with the sales of food and food ingredients. The bill mandates that starting from July 15, 2025, the Kansas Secretary of Revenue will certify the amount of revenue lost, providing critical data for funding decisions moving forward. This data will inform the extent of financial assistance that eligible districts will receive from the state government.

Contention

Despite its intended benefits, the bill may face scrutiny regarding its implications for taxpayer resources. Critics may argue about the responsibility of the state to cover these lost revenues, questioning whether this financial support diverts funding from other pressing state needs or programs. There may also be debates about the long-term effects of maintaining such a revenue replacement system and whether it could create dependency among local governments on state intervention. Overall, the key contention will be about balancing local fiscal responsibility with state-level assistance aimed at fostering development.

Notable_points

The bill is part of a broader strategy to enhance economic development through the use of STAR bond financing, a mechanism designed to capture future tax revenues generated by property development to finance bond repayments. HB2211 modifies the definition of tax increment to include sales tax revenues that would have been generated from food sales, thus expanding the scope of financial considerations for STAR bond districts. This amendment highlights the growing focus on ensuring that local economies can adequately fund essential services while fostering growth through targeted investments.

Companion Bills

No companion bills found.

Previously Filed As

KS SB57

Establishing a 0% state rate for sales and use taxes for food and food ingredients, providing a sales tax exemption for children's diapers and feminine hygiene products, establishing the STAR bonds food sales tax revenue replacement fund and altering the calculation for STAR bond districts.

KS HB2435

Decreasing the sales and use tax rate, establishing a 0% state rate for sales and use taxes for food and food ingredients, providing a sales tax exemption for children's diapers and feminine hygiene products, establishing the STAR bonds food sales tax revenue replacement fund and altering the calculation for STAR bond districts.

KS HB2111

Establishing a 0% state rate for sales and use taxes for food and food ingredients, providing a sales tax exemption for children's diapers and feminine hygiene products, establishing the STAR bonds food sales tax revenue replacement fund, altering the calculation for STAR bond districts and discontinuing the food sales income tax credit.

KS HB2387

Providing funding for STAR bond districts to replace lost food sales tax revenue, authorizing renovation and construction costs for historic theaters and major amusement parks, including amusement rides, as eligible STAR bond project costs, extending the deadline for the STAR bond report to certain legislative committees, and increasing the financing limit for pay-as-you-go funding for rural redevelopment projects.

KS HB2546

Reducing the state rate for sales and use taxes for sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.

KS HB2256

Decreasing the state rate for sales and use taxes for sales of food, food ingredients and prepared food and modifying the percent credited to the state highway fund from revenue collected.

KS SB248

Providing sales tax exemptions for certain food and food ingredients and for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf and repealing the state rate reduction for sales of certain food and food ingredients.

KS SB429

Reducing the state rate of tax on sales of food and food ingredients to 0% on April 1, 2024.

KS SB539

Simplifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, eliminating the income limit for the income tax subtraction modification exempting social security benefits, establishing a child tax credit, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate and establishing a 0% state rate for sales and use taxes for sales of food and food ingredients on July 1, 2024.

KS SB169

House Substitute for SB 169 by Committee on Taxation - providing an income tax rate of 5.15% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income, increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on January 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.

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KS HB2001

Authorizing the secretary of commerce to enter into agreements with major professional sports franchises to establish STAR bond projects for a major professional sports complex, providing for additional revenue sources, expanding the powers and discretion of the secretary and making other changes to the STAR bonds financing act to facilitate such projects, limiting the secretary’s authority to approve such projects to one year unless extended by the legislative coordinating council, authorizing the Kansas development finance authority to issue STAR bonds for such projects, transferring funds under certain circumstances from the state gaming revenues fund to the attracting professional sports to Kansas fund for the fiscal year ending June 30, 2025, and, if approved by the legislative coordinating council, for the fiscal year ending June 30, 2026.