Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Larry L. Campbell, Director Laura Kelly, Governor


March 11, 2019


The Honorable Julia Lynn, Chairperson
Senate Committee on Commerce
Statehouse, Room 445-S
Topeka, Kansas 66612
Dear Senator Lynn:
SUBJECT: Fiscal Note for SB 176 by Senate Committee on Assessment and Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning SB 176 is
respectfully submitted to your committee.
SB 176 would require the Department of Commerce to establish a database for the purpose
of disclosing information on economic development incentive programs. “Economic development
incentive program” would be defined to include certain income tax credits and locally-granted
property tax exemptions in addition to various programs administered directly by the Department.
In regard to economic development incentives, the Department would be required to
provide data on most programs providing more than $50,000 in annual incentives and make the
information available to the public in a digital format. The information would be required to be
available for multiple years and be searchable and available on the Internet. The database would
contain names and addresses of recipients receiving sales tax and revenue (STAR) bond benefits,
as well as names of principals and officers for each STAR bond project developer; annual amount
of incentives claimed and distributed to each recipient; qualification criteria for each economic
development program; and required benchmarks for participation. Additional descriptive
information would be required to include the history of each program; its purpose and goals;
current applications; the program cost and return on investment; annual reports; and the amount of
incentives by county. However, information on the economic development incentive programs
would not be disclosed if disclosure would violate any federal law or confidentiality provisions of
agreements executed prior to July 1, 2019; or if the Secretary of Commerce determines disclosure
would be detrimental to the development of a STAR bond project.
Existing taxpayer confidentiality provisions would be modified to allow the Secretary of
Revenue to disclose certain income and privilege tax credit information to the Department of
Commerce, except that certain social and domestic tax credits would be excluded from the bill’s
provisions, including adoption credits; earned income tax credits; food sales tax credits; child and
dependent care tax credits; and homestead property tax refund credits.
The Honorable Julia Lynn, Chairperson
Page 2—SB 176

Estimated State Fiscal Effect
FY 2019 FY 2019 FY 2020 FY 2020
SGF All Funds SGF All Funds
Revenue -- -- -- --
Expenditure $59,813 $59,813 $44,550 $44,550
FTE Pos. -- 1.00 -- 0.60
The Department of Commerce anticipates that it would need an additional 1.00 FTE
position and salaries and wages expenditures of $59,813 from the State General Fund in FY 2019
to collect and report the information required in the bill. For FY 2020 and subsequent years, the
Department would require an additional 0.60 FTE position and salaries and wages expenditures of
$44,550 to collect and report the information. Any fiscal effect associated with SB 176 is not
reflected in The FY 2020 Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Director of the Budget


cc: Sherry Rentfro, Commerce
Lynn Robinson, Department of Revenue


Statutes affected:
As introduced: 75-5133, 79-3234