Under Kansas Statute KSA 12-6a29 cities may create districts that help to fund community improvement. The Unified Government has done so through Community Improvement Districts (CID).
A CID is an area within which businesses pay an additional sales tax (typically 1% or less) or a special assessment that fund improvements within that district. An example of a recent CID can be found under "SUCCESS STORIES" with the 39th and Rainbow development project.
Article 11. Sect. 13 of the Kansas Constitution allows the counties of Kansas to grant exemptions of ad valorem taxes (property taxes) for business with a lifetime of up to ten years. There are certain qualifications these businesses must meet. The property (real or personal) must be used exclusively for manufacturing articles of commerce, conducting research or development, or storing goods which are sold or traded in interstate commerce.
Industrial Revenue Bonds (IRBs) are used in Kansas to finance acquisition and construction of a broad variety of industrial, commercial and industrial properties under K.S.A. 12-1740 et seq on behalf of private businesses or non-profit agencies. IRB’s require a governmental entity (the Unified Government) to act as the "Issuer" of the bonds, who will hold an ownership interest in the property for as long as the IRBs are outstanding. The businesses gain several benefits with the use of IRB's including the possibility of tax exemption.
The Neighborhood Revitalization Act (NRA) program is a percentage rebate of the additional taxes paid because of a qualified improvement based on construction cost for a set period of time. The rebate applies only to the additional taxes resulting from the increase in the assessed value of the property. Both commercial and residential property owners can apply for the rebate.
Initial Eligibility Criteria
- You must be the property owner. If you have an option agreement approved to build on a land bank lot, you can apply for the NRA rebate prior to ownership. The rebate will not be finalized until ownership is established and the NRA application process has been completed and approved.
- The property must be in a designated NRA area.
- Applicant must be current on their property taxes.
- The planned improvement must comply with the Unified Government zoning ordinances and all applicable codes.
Which areas qualify for the NRA rebate?
Check the NRA Map(PDF, 453KB) to see if your project is in an NRA designated area.
- Area 1 - 10 year, 95% rebate
- Area 2 - 5 year, 95% rebate
- Area 3 - 5 year, 95% rebate
What types of projects will make my assessed value go up?
To qualify for the NRA rebate, you must increase the value of your property by 15% or more when your project is completed. New builds, garages, and structural additions qualify as projects that may increase your value. When considering home renovations, kitchens and bathrooms tend to increase a home's value significantly. Exterior paint, new windows, or other small cosmetic projects generally do not get applicants over the 15% threshold.
When you apply for the rebate, you are not approved until your project is complete and the appraiser has reassessed your property's value.
I'm interested in a commercial property rebate, what should I know?
The NRA rebate is open to commercial property owners as long as the property falls within a designated rebate area and meets eligibility criteria. Please refer to pages 7, 8, and 10 of the NRA Plan(PDF, 728KB) for more detailed information about eligibility, required documents, application fees, and more.
Additionally, the Unified Government has highlighted special project areas where certain commercial projects may qualify for a 20 year, 75-85% tax rebate (NRA Plan(PDF, 728KB), page 8). Special projects are those over $3,000,000 in construction cost and must meet the following criteria:
- Retail in nature;
- In an environmentally contaminated area, or
- Historic designation by either the State of Kansas or Federal Register.
Use these maps to view special project areas referenced in the NRA plan:
My rebate was approved, when do I get my checks?
Rebate checks are sent out twice a year – Spring and Fall. If you do not have a mortgage or pay property taxes once a year, you will receive one rebate check per year in the Spring. If you are a recent applicant, use this graphic to understand how we distribute checks after tax payments.
I haven't received my check this year, who do I contact?
The Treasury office manages check distribution. They can be reached at (913) 573-2821 or email@example.com. The Treasury is located at 710 N 7th St., Suite 240, Kansas City, KS, 66101.
I am selling a property with a rebate, can I transfer it to the buyer?
Yes! Please complete the Rebate Transfer Form(PDF, 607KB) and email it to firstname.lastname@example.org. You'll need to include the date that the deed was recorded with the new owner and the document number. You'll have this information after you close on the sale of the property. If you're unsure of this information, you may contact the Register of Deeds at (913) 573-2841.
Do you have a flyer I can share about this program?
Sales Tax Revenue (STAR) Bonds the Unified Government the opportunity to issue bonds to finance the development of major commercial, entertainment and tourism areas and use the sales tax revenue generated by the development to pay off the bonds. The most popular example of the issuance of STAR Bonds by the Unified Government is the Village West development in Western Wyandotte County.
STAR Bonds Overview & FAQ(PDF, 47KB)
A Tax Increment Financing (TIF) District allows the Unified Government to use its power of eminent domain (i.e. condemnation) to acquire property needed for a development project and to use the funds generated by the tax increment (new property taxes generated by the project) in the project.
TIF Districts may exist for up to twenty years per project. In accordance with Kansas Laws, these funds may only be used for TIF-eligible expenses, which include but are not limited to:
- Land Acquisition and Relocation (of families).
- Public Improvements (curbs, sidewalks, streets).
- Site Preparation (demolition).