SENATE BILL No. 129
An Act relating to annual reports concerning certain tax incentive effectiveness;
amending K.S.A. 2001 Supp. 74-8017 and repealing the existing section.
Section 1. K.S.A. 2001 Supp. 74-8017 is hereby amended to read as
follows: 74-8017. (a) 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 economic development within this state and submit the same
to the standing committees on taxation and economic development of the
house and assessment and taxation and commerce of the senate at the
beginning of each regular session of the legislature. The secretary of rev-
enue, in consultation 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 preparation of such annual report. The questionnaire shall
require respondents to indicate utilization of the following credits and
(1) (a) Income tax credits authorized under the provisions of the job
expansion and investment credit act of 1976 and acts amendatory thereof
and supplemental thereto;
(2) (b) income tax credits for expenditures in research and develop-
ment activities authorized by K.S.A. 79-32,182, and amendments thereto;
(3) (c) income and financial institutions privilege tax credits for cash
investment in stock of Kansas Venture Capital, Inc. authorized by K.S.A.
74-8205 and 74-8206, and amendments thereto;
(4) (d) income tax credits for cash investment in certified Kansas ven-
ture capital companies authorized by K.S.A. 74-8304, and amendments
(5) (e) income tax credits for cash investment in certified local seed
capital pools authorized by K.S.A. 74-8401, and amendments thereto;
(6) (f) income tax credits for investment in the training and education
of qualified firms' employees authorized by K.S.A. 2001 Supp. 74-50,132,
and amendments thereto;
(7) (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
(8) (h) sales tax exemptions for machinery and equipment used di-
rectly and primarily for the purposes of manufacturing, assembling, proc-
essing, 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 fa-
cility. The secretary of revenue shall provide the completed question-
naires and copies of sales tax exemption certificates to Kansas, Inc. for
the preparation of such report.
(b) Prior to the commencement of the 2002 legislative session, Kan-
sas, Inc. and the Kansas department of revenue shall agree upon proce-
dures for the purpose of disclosure of corporate and individual taxpayer
information to fulfill the purposes of this section and protect sensitive
taxpayer information to the extent possible consistent with this section.
Such procedures shall be submitted to an appropriate committee at the
commencement of such session in the form of a proposed bill.
Sec. 2. K.S.A. 2001 Supp. 74-8017 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
Approved April 24, 2002.
Date Composed: 10/10/2002 Date Modified: 10/10/2002