The bill establishes a STAR bonds food sales tax revenue replacement fund to compensate STAR bond districts created before December 31, 2022, for lost food sales tax revenue. Starting July 15, 2025, the Secretary of Revenue will certify the monthly amount of revenue that would have been generated from food sales at a state tax rate of 6.5%. The state treasurer will then transfer these certified amounts from the state general fund to the replacement fund, which will be used to support the bond finance, debt service, or reserve fund of the appropriate city or county.

In addition to creating the replacement fund, 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 tourism area," and "project costs." It modifies the definition of "STAR bond project district" to specify eligible areas while ensuring that properties from other STAR bond project districts are excluded unless approved by the Secretary of Commerce. The bill also updates regulations surrounding "STAR bond project plans" and "tax increment," detailing how these are calculated and introducing provisions for taxpayers relocating into STAR bond districts. It repeals K.S.A. 2024 Supp. 12-17,162, indicating a significant update to the legal framework governing STAR bond projects, and will take effect upon publication in the statute book.

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