August 20, 2014

Kansas sees higher July revenues

Revenue receipts for the first month of the fiscal year topped July 2011 tax collections by $20 million, or 4.6 percent, on Tuesday, and corporate income taxes significantly outperformed expectations, beating the monthly estimate by 40 percent, or $4 million.
Overall revenue receipts bested estimates for July, finishing $2.7 million more than expected.
Use tax receipts were about $1 million, or 3.2 percent, more than expected, indicating that businesses are buying more equipment.
Income tax receipts held steady, almost exactly even with estimates.
“A healthy growth rate of nearly 5 percent over last July is more positive evidence that our state economy continues to strengthen,” said Revenue Secretary Nick Jordan. “Thanks to hardworking Kansas families and businesses, our state is on strong financial footing and poised for success.”

Comments

  1. Judith Rogers says:

    Hey, Nick, let us know the statistics on income received from all sales taxes for each of the past 5 years. Then let us know what the following entities received from these sales taxes for each of these five years: state, county and cities.

  2. Judith Rogers says:

    What ole Nick and the rest of the slimy politicians need to do is supply a report about all of the LOST TAX REVENUE to the taxpayers due to the never-ending sweet deals given to the winners. Here is a copy of the incentive policy for New Century that Lee Metcalfe provided to me in 2007. To my knowledge the incentive policy has not been eliminated but probably sweetened even more – any citizen may provide the latest policy for all to consider. Note how there is the provision that they can even enhance the handout package even more if they so choose. Look at the despicable low requirements to get the incentive such as being required to only provide 2 or 5 new jobs. Do you think the good ole School Dist. is going to stand up for you on these handouts? They certainly didn’t on the Kimberly-Clark deal after telling me they would nor have they on deal after deal made in the back rooms of our government halls of shame. And you better think about whether NEW jobs are being created and what kind of jobs – do they provide livable wages, are they hire and fire jobs, what are the benefits available to employees, will the projects be creating more social costs, pollution, deaths and other adverse affects? Be very aware of who is putting you in the poor house.

    Economic Development Incentives Program

    It is the policy of the Johnson County Airport Commission to consider financial incentives to projects that stimulate economic growth and development expand and diversify the tax base and create new employment opportunities.

    The purpose of this policy is to define the financial incentives, to establish the standards by which they will be implemented by the Airport Commission, and provide an application process under which incentives will be considered. The establishment of a new business or the expansion of an existing business may be considered for financial incentives.

    Policy:

    1. To qualify for financial incentives, the project shall meet the following criteria:

    a. Manufacturing firms must create two (2) or more full-time jobs and other non-retail firms must create five (5) or more full-time jobs at the time the new or expanded business begins operations.

    b. The project must not be in conflict with any other established County policy, plan, or procedure.

    c. The entity developing the project must demonstrate the financial capacity to complete the project.

    d. No abatements shall be considered for an intra-county relocation, unless all of the following occur: (1) the applicant can demonstrate that it has exhausted all options at its current location, (2) the city wherein the company is currently located provides a letter stating that it has been unable to negotiate an arrangement satisfactory to the company, and (3) the company provides documentation that it has been offered a site outside of Johnson County. The Airport Commission shall not recruit from or “bid” against any city within Johnson County for a business relocation or expansion by a Johnson County business.

    2. Financial Incentives Potentially Available to Qualified Projects

    a. Property Tax Abatement

    The Airport Commission may consider property tax abatements as provided for under Kansas statutes. The Airport Commission may, at its discretion, determine the amount of abatement and the number of years for which abatement will be granted after considering the net impact upon the County. The cost-benefit analysis will include, but not be limited to, the project’s impact in terms of the diversification of economy and tax base, creation of jobs, quality of life, meeting the strategic objectives of the Airport Commission versus the overall cost of the project to the individual taxing entities, including both the Airport Commission and school district.

    Any abatement that may be approved for the expansion of an existing business shall apply only to the increased value as a result of the expansion. The existing facility is not eligible for abatement.

    b. Industrial Revenue Bonds

    The Airport Commission may authorize the issuance of Private Activity Bonds (IRB’s) when such action would benefit the County by providing for net new jobs and diversifying the local economy. For projects which qualify per federal standards, the Airport Commission may issue tax-exempt IRB’s which provide for additional cost-savings to the client.

    c. Enterprise Zone Benefits

    1. A sales tax exemption on construction materials and services and on machinery and equipment.

    2. A one-time credit against the firm’s Kansas income tax liability of $1,000 for each $100,000 of qualified investment.

    3. A one-time credit against the firm’s Kansas income tax liability of $1,500 for each job created.

    Note: The combined income tax credits may not exceed 50% of the firm’s Kansas income tax liability in any given year. Any unused portion of credit may be carried over into succeeding years until the total credit is used.

    d. Utility Based Economic Development Incentives

    Kansas City Power & Light Company may provide a direct financial incentive to new and existing businesses which qualify based on their electric demand usage as outlined below:

    Economic Development Rider (New Customers)

    New customers having a demand usage of eighty (80) kilowatts or more will be eligible for a 25% reduction of the above demand charge and kilowatt hour charge for the first year of service, a 20% reduction the second year of service, a 15% reduction the third year of service, 10% reduction the fourth year, and a 5% reduction the fifth year of service.

    After the fifth year of service, the normal rates for the class of customer shall apply.

    Other Incentives

    The Airport Commission may, at its discretion, add to the incentives contained within this policy.

    Procedure:

    1. Application Process

    a. The project developer or firm must apply to the Airport Commissionfor approval of the financial incentives desired.
    b. The application shall provide a project summary sufficient to provide a thorough understanding of the proposed project. This shall include estimated project size and cost, industry description, and number of jobs created.

    c. A cost-benefit analysis shall be completed by staff to document the project’s potential overall worthiness to the County over a period of ten years.

    The analysis which takes into consideration the overall costs to the Airport Commission will include, but is not limited to, any direct financial participation and tax abatements requested for the project.

    The benefits to the Airport Commission considered will include, but is not limited to, net increased property tax revenues, sales tax revenues and utility revenues. The analysis may also evaluate the benefit to the County in terms of the firm’s average employee wage level, standard industry classification, and potential for continued future growth at the New Century AirCenter either directly by the firm or through attraction of other businesses which support the operations of the firm.

    d. Should tax abatements be considered, the Airport Commission will seek comment from the Board of U.S.D. 231 in writing. The Airport Commission that will allow for an analysis of the project’s impact on the district shall give the school district.

    2. The Airport Commission may approve the amount and length of tax abatement and other incentives deemed appropriate for the project proposed. The Johnson County Board of Commissioners must approve all incentive packages that include tax abatements.

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