Session Law

Identifying Information:L. 2002 ch. 099
Other Identifying Information:2002 Senate Bill 129
Tax Type:Corporate Income Tax
Brief Description:An Act relating to annual reports concerning certain tax incentive effectiveness;amending K.S.A. 2001 Supp. 74-8017 and repealing the existing section.
Keywords:


Body:

CHAPTER 99

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.


Be it enacted by the Legislature of the State of Kansas:

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

exemptions:

(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

thereto;

(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.


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Date Composed: 10/10/2002 Date Modified: 10/10/2002