The bill establishes a funding mechanism to replace lost food sales tax revenue for STAR bond districts created before December 31, 2022, by introducing the STAR bonds food sales tax revenue replacement fund. This fund will be financed through monthly transfers from the state general fund starting August 1, 2025. The Secretary of Revenue will certify the amount of revenue that would have been generated from food sales tax, which will then be used to reimburse the relevant city or county bond finance, debt service, or reserve fund for each STAR bond project district. The bill also outlines the criteria for determining when no further certifications or transfers are necessary, specifically when all principal and interest costs of special obligation bonds have been satisfied.

Additionally, the bill amends K.S.A. 2024 Supp. 12-17,162 to clarify definitions related to STAR bonds, including terms such as "auto race track facility," "major motorsports complex," and "rural redevelopment project," while modifying the definition of "river walk canal facilities." It introduces a new definition for "substantial change" and specifies how "tax increment" is calculated, particularly concerning revenue from various taxes, including food and alcoholic beverage sales. The bill also repeals K.S.A. 2024 Supp. 12-17,162, streamlining the process for establishing STAR bond project districts and clarifying the financial implications for businesses within these areas. The act will take effect upon its publication in the statute book.

Statutes affected:
As introduced: 12-17, 79-3201