The bill amends the STAR Bonds Financing Act to establish a food sales tax revenue replacement for STAR bond districts created before December 31, 2022. It creates the STAR Bonds Food Sales Tax Revenue Replacement Fund, which will receive transfers from the state general fund to offset lost sales tax revenues resulting from changes in the sales tax on food and food ingredients. Additionally, the bill extends the sunset date of the STAR Bonds Financing Act to July 1, 2031, and outlines a certification process for the Secretary of Revenue to determine the additional sales and use tax revenue that would have been generated from food sales in these districts. The state treasurer will then transfer the certified amounts to the relevant city or county bond finance, debt service, or reserve fund.

Moreover, the bill revises existing laws concerning STAR bond projects, allowing for development in non-contiguous areas and prioritizing repayment of outstanding STAR bonds from previous projects. It introduces new definitions, such as "STAR bond project district plan" and "STAR bond project plan," and clarifies tax increment calculations, including provisions for revenue from alcoholic liquor sales. The bill also extends STAR bond provisions to certain redevelopment districts established before its enactment, specifically in Manhattan and Wyandotte County, and modifies the expiration date for STAR bond project provisions to July 1, 2031. Certain sections of existing law are repealed, and the bill will take effect upon publication in the statute book.

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