The proposed bill seeks to stimulate economic development in Kansas by offering a sales tax exemption for the construction or remodeling of qualified data centers, contingent upon firms making a minimum investment of $250,000,000 and creating at least 20 new jobs within two years. It establishes definitions for key terms such as "qualified data center" and "eligible data center costs," and outlines an application process that includes requirements for water conservation and compliance audits. Additionally, the bill prohibits public utilities from providing discounted electric rates to data centers, ensuring that these facilities are treated distinctly in terms of economic incentives. The sales tax exemption is valid for 20 years, with provisions for revocation if the firm breaches the agreement.
Moreover, the bill amends existing laws to clarify the classification of machinery and equipment used in production operations, specifying what qualifies for tax exemptions. It introduces new definitions related to sales tax exemptions for various nonprofit organizations and construction projects, requiring contractors to obtain exemption certificates and maintain records for audit purposes. The bill also includes penalties for misuse of these certificates and outlines a process for refunding sales tax on exempt purchases made prior to the bill's effective date. Overall, the legislation aims to streamline tax exemption processes while ensuring compliance and accountability among organizations benefiting from these exemptions.
Statutes affected:
Enrolled: 66-101j, 79-3606