Kansas Statutes 74-50,115. Same; sales tax exemption; requirements
Terms Used In Kansas Statutes 74-50,115
- Act: means the provisions of Kan. See Kansas Statutes 74-50,211
- department: means the department of commerce;
(4) "entrepreneur" means an individual creating a new business, service or product;
(5) "region" means multi-county areas as defined by the secretary of commerce;
(6) "regional business development fund" means an authorized and audited fund that is created by taxpayer contributions, interest income and investment income and is managed by the regional foundation board of directors for the purposes of economic and leadership development in the region;
(7) "regional foundation" means any organization in Kansas that demonstrates capacity to provide economic development services to regions as defined by this act, and: (A) Has obtained a ruling from the internal revenue service of the United States department of treasury that such organization is exempt from income taxation under the provisions of section 501(c)(3) or 501(c)(6) of the federal internal revenue code;
(B) has been designated as a certified development company by the United States small business administration;
(C) has been designated as an economic development district by the United States department of commerce's economic development administration;
(D) has been organized as a regional planning commission under Kan. See Kansas Statutes 74-50,154
- Eligible business: means a person, corporation, partnership or other entity doing business in Kansas that satisfies conditions imposed by the secretary, which may include, among other conditions, that the person, corporation, partnership or other entity:
(A) Paid at least $600,000,000 in average annual gross Kansas compensation, according to reports filed with the secretary of labor, during the base eligibility period; and
(B) paid at least $50,000 of average annual gross compensation per Kansas employee during the base eligibility period; and
(C) has invested at least $1,000,000,000 in real and tangible personal property located within and currently used in the operation of a business in Kansas; and
(D) is described by North American industrial classification system as being in the manufacturing sector. See Kansas Statutes 74-50,136
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Program: means the Kansas individual development account program established in Kan. See Kansas Statutes 74-50,202
- Qualified firm: means a for-profit business establishment, subject to state income, sales or property taxes, identified under the North American industry classification system (NAICS) subsectors 221, 311 to 339, 423 to 425, 481 to 519, 521 to 721 and 811 to 928 or is identified as a corporate or regional headquarters or back-office operation of a national or multi-national corporation regardless of NAICS designation. See Kansas Statutes 74-50,131
- Retraining: means retraining of employees of a restructuring industry who are likely to be displaced because of obsolete or inadequate job skills and knowledge. See Kansas Statutes 74-5065
- Secretary: means the secretary of commerce. See Kansas Statutes 74-5059
- State: means the state of Kansas. See Kansas Statutes 74-5059
- Training: means training of employees or preemployment training of prospective employees for jobs newly created by a new or expanding industry. See Kansas Statutes 74-5065
(a) A manufacturing business may be eligible for a sales tax exemption under the provisions of subsection (cc) of Kan. Stat. Ann. § 79-3606, and amendments thereto, if the manufacturing business complies with the following requirements:
(1) A manufacturing business shall provide documented evidence of job expansion involving the employment of at least two additional full-time employees; and
(2) a manufacturing business located within the state of Kansas that has documented evidence of job expansion as provided in paragraph (1), which relocates in another city or county within the state of Kansas must receive approval from the secretary prior to qualifying for the sales tax exemption in subsection (cc) of Kan. Stat. Ann. § 79-3606, and amendments thereto, except that approval by the secretary shall not be required if the manufacturing business relocates within the same city.
(b) A nonmanufacturing business may be eligible for a sales tax exemption under the provisions of subsection (cc) of Kan. Stat. Ann. § 79-3606, and amendments thereto, if the nonmanufacturing business complies with the following requirements:
(1) A nonmanufacturing business shall provide documented evidence of job expansion involving the employment of at least five additional full-time employees; and
(2) a nonmanufacturing business located within the state of Kansas that has documented evidence of job expansion as provided in paragraph (1), which relocates in another city or county within the state of Kansas must receive approval from the secretary prior to qualifying for the sales tax exemption in subsection (cc) of Kan. Stat. Ann. § 79-3606, and amendments thereto, except that approval by the secretary shall not be required if the nonmanufacturing business relocates within the same city.
(c) A retail business may qualify for the sales tax exemption under subsection (cc) of Kan. Stat. Ann. § 79-3606, and amendments thereto, if the retail business complies with the following requirements:
(1) A retail business shall provide documented evidence of job expansion involving the employment of at least two additional full-time employees; and
(2) (A) such retail business locates or expands to a city having a population of 2,500 or less, as determined by the latest Kansas division of budget revised population numbers that are certified to the secretary of state, or (B) such retail business locates or expands to a location outside a city in a county having a population of 10,000 or less, as determined by the latest Kansas division of budget revised population numbers that are certified to the secretary of state.
(d) Any person constructing, reconstructing, remodeling or enlarging a facility which will be leased in whole or in part for a period of five years or more, or commencing on the effective date of this act and ending on April 1, 2007, any person constructing, reconstructing, remodeling or enlarging a facility located within Saline county which title of such facility will be conveyed, to a business that would be eligible for a sales tax exemption hereunder if such business had constructed, reconstructed, enlarged or remodeled such facility or portion thereof itself shall be entitled to the sales tax exemption under the provisions of subsection (cc) of Kan. Stat. Ann. § 79-3606, and amendments thereto. When such person leases less than the total facility to an eligible business, a project exemption certificate may be granted on: (1) The total cost of constructing, reconstructing, remodeling or enlarging, the facility multiplied by a fraction given by dividing the number of leased square feet eligible for the sales tax exemption by the total square feet being constructed, reconstructed, remodeled or enlarged; or (2) the actual cost of constructing, reconstructing, remodeling or enlarging that portion of the facility to be occupied by the eligible business, as the person may elect.
(e) A business may qualify for a sales tax exemption under subsection (cc) of Kan. Stat. Ann. § 79-3606, and amendments thereto, without regard to any of the foregoing requirements of this section if it is certified as a qualified firm by the secretary of commerce pursuant to Kan. Stat. Ann. § 74-50,131, and amendments thereto, and is entitled to the corporate tax credit established in Kan. Stat. Ann. § 74-50,132, and amendments thereto, or has received written approval for participation and has participated, during the tax year in which the exemption is claimed, in training assistance by the department of commerce under the Kansas industrial training, Kansas industrial retraining or state of Kansas investments in lifelong learning program.
(f) The secretary may adopt rules and regulations to implement and administer the provisions of this section.