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

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 tourism area," and "project costs." It specifies that STAR bond project districts must be contiguous and outlines conditions for including real property in these districts. The bill also introduces new definitions for "STAR bond project plans" and "substantial change," and clarifies how "tax increment" is calculated, particularly regarding revenue from various taxes. The existing section of K.S.A. 2024 Supp. 12-17,162 is repealed, indicating a significant update to the legal framework governing STAR bonds and their associated projects. The act will take effect upon its publication in the statute book.

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