The bill establishes a new community improvement district privilege tax that Kansas municipalities can impose on the sale of alcoholic beverages, food, food ingredients, and tobacco, with a maximum rate of 1% in increments of 0.10% or 0.25%. This tax is designed to finance projects within the community improvement district and will be collected from consumers by sellers, who will then remit it to the state department of revenue. The tax will remain in effect until the bonds for the project mature or for a maximum of 22 years if pay-as-you-go financing is utilized. Additionally, the bill creates a community improvement district privilege tax fund and a refund fund for any overpayments.

The bill also amends existing laws to prevent cities or counties from imposing other excise taxes beyond the new privilege tax and outlines the procedures for creating or modifying community improvement districts, including the requirement for a petition signed by landowners. It removes the need for petitions to seek both the issuance of full faith and credit bonds and the privilege tax, allowing for greater flexibility in financing. The bill clarifies the necessary information for petitions and resolutions, establishes that names on petitions cannot be withdrawn after a certain point, and streamlines the financing process by allowing municipalities to issue special obligation bonds. Overall, the bill aims to modernize the legal framework for community improvement districts and enhance local economic development efforts.

Statutes affected:
As introduced: 79-3602, 12-194, 12-6a26, 12-6a27, 12-6a29, 12-6a30, 10-115, 12-6a32, 12-6a36, 12-6a33, 12-6a34, 12-6a35