Industrial Revenue Bonds

CID and other incentives proposed in downtown Wichita

CID and other incentives proposed in downtown Wichita

A proposal for a community improvement district in downtown Wichita includes a public hearing, but much information the public needs is missing. This week the Wichita City Council will consider starting the process of creating a community improvement district and other economic development incentives. The action the council will consider Tuesday is to accept the petition of the property owners and set September 6 as the date for the public hearing. Also, on September 6, "a development agreement defining the City and Developer’s responsibilities will be presented to the City Council."[1. Wichita City Council Agenda packet for August 16, 2016.…
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In Wichita, more sales tax hypocrisy

In Wichita, more sales tax hypocrisy

Another Wichita company that paid to persuade you to vote for higher taxes now seeks to avoid paying those taxes. Next week the Wichita City Council will consider issuing industrial revenue bonds to benefit a local company. In Kansas, IRBs are not a loan of money from government. Instead, the bonds are a vehicle for conveying property tax abatements, and often sales tax exemptions. [1. Weeks, Bob. Industrial revenue bonds in Kansas. Available at bobw7.sg-host.com/kansas-government/industrial-revenue-bonds-kansas/.] The applicant company is Hijos, LLC/JR Custom Metal Products, Inc. City documents give the value of abated taxes at $44,900 for the first year. Following…
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Kansas economic development programs

Kansas economic development programs

Explaining common economic development programs in Kansas. TIF projects: Some background Tax increment financing disrupts the usual flow of tax dollars, routing funds away from cash-strapped cities, counties, and schools back to the TIF-financed development. TIF creates distortions in the way cities develop, and researchers find that the use of TIF means lower economic growth. Click here. Tax increment financing (TIF) resources Resources on tax increment financing (TIF) districts. Click here. STAR bonds in Kansas The Kansas STAR bonds program provides a mechanism for spending by autopilot, without specific appropriation by the legislature. Click here. Industrial Revenue Bonds in Kansas…
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