The bill establishes a STAR bonds food sales tax revenue replacement fund to compensate for lost food sales tax revenue in STAR bond districts created before December 31, 2022. 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 for each STAR bond project district.

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," "developer," and "project costs," and modifies the definition of "river walk canal facilities." It also revises provisions regarding "STAR bond project plans" and "tax increment," specifying how tax increment is calculated and including state sales and use tax revenue from food sales for districts established before December 31, 2022. The bill introduces new provisions for determining base year revenue for relocating taxpayers and clarifies the treatment of local tax revenues for previously approved STAR bond projects, while repealing outdated provisions in K.S.A. 2024 Supp. 12-17,162. The act will take effect upon publication in the statute book.

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