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 (10) 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.
Initial Eligibility Criteria
- You must be the property owner
- 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
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)
Please submit applications to the Economic Development Department 701 N 7th Street, Suite 421, Kansas City, KS 66101. Attention: UG Small Business Incentive Pilot Program.
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 (20) 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)