Tax abatements

Kansas cities should not unilaterally grant tax breaks

Kansas cities should not unilaterally grant tax breaks

When Kansas cities grant economic development incentives, they may also unilaterally take action that affects overlapping jurisdictions such as counties, school districts, and the state itself. The legislature should end this. When Kansas cities create tax increment financing (TIF) districts, the overlapping county and school district(s) have an opportunity to veto its creation. These other jurisdictions do not formally have to give their consent to its formation; if they do nothing, it is assumed they concur. But for some other forms of incentives, such as tax increment financing district redevelopment plans, property tax abatements, and sales tax abatements, overlapping jurisdictions…
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Wichita to consider tax exemptions

Wichita to consider tax exemptions

A Wichita company asks for property and sales tax exemptions on the same day Wichita voters decide whether to increase the sales tax, including the tax on groceries. This week the Wichita City Council will hold a public hearing concerning the issuance of Industrial Revenue Bonds to Spirit AeroSystems, Inc. The purpose of the bonds is to allow Spirit to avoid paying property taxes on taxable property purchased with bond proceeds for a period of five years. The abatement may then be extended for another five years. Additionally, Spirit will not pay sales taxes on the purchased property. City documents…
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For Wichita, another economic development plan

For Wichita, another economic development plan

The Wichita City Council will consider a proposal from a consultant to "facilitate a community conversation for the creation of a new economic development diversification plan for the greater Wichita region." Haven't we been down this road before? This week the Wichita City Council will consider funding "the formulation of a new economic development strategy." Here's a summary provided by the city: Wichita State University approached STARNet about developing a proposal to assist WSU, the Wichita Metro Chamber of Commerce and the community with the formulation of a new economic development strategy. Over a period of almost ten months STARNet…
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To Wichita, a promise to wisely invest if sales tax passes

To Wichita, a promise to wisely invest if sales tax passes

Claims of a reformed economic development process if Wichita voters approve a sales tax must be evaluated in light of past practice and the sameness of the people in charge. If these leaders are truly interested in reforming Wichita's economic development machinery and processes, they could have started years ago using the generous incentives we already have. At a conference produced by Kansas Policy Institute on Friday September 19, a panel presented the "nuts and bolts" of the jobs portion of the proposed Wichita sales tax that voters will see on their November ballots. I asked a question: Listening to…
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Beechcraft incentives a teachable moment for Wichita

Beechcraft incentives a teachable moment for Wichita

The case of Beechcraft and economic development incentives holds several lessons as Wichita considers a new tax with a portion devoted to incentives. In December 2010 Kansas Governor Mark Parkinson announced a deal whereby the state would pay millions to Hawker Beechcraft to keep the company in Kansas. The company had been considering a purported deal to move to Baton Rouge, Louisiana. (Since then the company underwent bankruptcy, emerged as Beechcraft, and has been acquired by Textron.) The money from the state was to be supplanted by grants from the City of Wichita and Sedgwick County. At the time, the…
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What Boeing received from Wichita was better than cash

What Boeing received from Wichita was better than cash

Supporters of the proposed Wichita sales tax contend that the millions in incentives Boeing received were not cash. That's true -- they were more valuable than cash. At a forum on the proposed Wichita sales tax on September 9, 2014, "Yes Wichita" co-chair Jon Rolph told the audience "The Boeing incentive thing? The city never gave Boeing incentives. They didn't take our incentive money and run." As explained at Fact-checking Yes Wichita: Boeing incentives, the claim that the “city never gave Boeing incentives” must be astonishing news to the Wichita city officials who dished out over $600 million in subsidies…
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Fact-checking Yes Wichita: Sales tax cost per household

Fact-checking Yes Wichita: Sales tax cost per household

The cost of the proposed Wichita sales tax to households is a matter of dispute. I present my figures, and suggest that "Yes Wichita" do the same. At a forum on the proposed Wichita sales tax on September 9, 2014, Jennifer Baysinger told the audience that "the average family bringing in about $50,000 a year would pay about $240 a year tax." She was speaking on behalf of Coalition for a Better Wichita, a group that opposes the one cent per dollar sales tax that Wichita voters will see on their November ballots. In his rebuttal, "Yes Wichita" co-chair Jon…
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Fact-checking Yes Wichita: Boeing incentives

Fact-checking Yes Wichita: Boeing incentives

The claim that the "city never gave Boeing incentives" will come as news to the Wichita city officials who dished out over $600 million in subsidies and incentives to the company. At a forum on the proposed Wichita sales tax on September 9, 2014, "Yes Wichita" co-chair Jon Rolph told the audience "The main reason I'm here, I need to educate folks on this. There's been a lot of misinformation out there." The proposed one cent per dollar Wichita sales tax will be voted on by Wichita voters in November. The city plans to use the proceeds for four areas:…
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What incentives can Wichita offer?

What incentives can Wichita offer?

Wichita government leaders complain that Wichita can't compete in economic development with other cities and states because the budget for incentives is too small. But when making this argument, these officials don't include all incentives that are available. In making the case for an economic development fund paid for by a sales tax, the argument goes like this: "Wichita and Sedgwick County compete conservatively with incentives. The City of Wichita and Sedgwick County have a total of $1.65 million in new uncommitted funds for cash incentives this year with any unused money going back to the general fund." (Will Wichita…
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Economic development in Wichita, one tale

Economic development in Wichita, one tale

In this excerpt from WichitaLiberty.TV: A look at a recent episode of economic development in Wichita, and what can we learn from that. View below, or click here to view at YouTube. Originally broadcast June 15, 2014. For more on this issue, see A lesson for Wichita in economic development.
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