Kansas HB 2292: Providing for food sales tax revenue replacement for STAR bond districts established prior to December 31, 2022, establishing the STAR bonds food sales tax revenue replacement fund, providing for transfers from the state general fund to such revenue replacement fund and transfers from such revenue replacement fund in the amount of food sales tax revenues lost to the applicable cities or counties and extending the sunset date of the STAR bonds financing act to July 1, 2031.

Bill Text

Session of 2025
HOUSE BILL No. 2292
By Committee on Commerce, Labor and Economic Development
Requested by Rachel Willis on behalf of the Department of Commerce
2-5
AN ACT concerning the STAR bonds financing act; providing for food
sales tax revenue replacement for STAR bond districts established prior
to December 31, 2022; establishing the STAR bonds food sales tax
revenue replacement fund; providing for transfers from the state
general fund to such revenue replacement fund and transfers from such
revenue replacement fund in the amount of sales tax revenues lost for
STAR bond payments due to legislative changes to the state sales tax
for food and food ingredients to the cities or counties that have
established such STAR bond districts; extending the sunset date of the
STAR bonds financing act to July 1, 2031; amending K.S.A. 12-17,179
and K.S.A. 2024 Supp. 12-17,162 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) On July 1, 2025, the secretary of revenue, in
consultation with the governing body of each city or county that has
established a STAR bond project district prior to December 31, 2022, shall
certify to the director of the budget and the director of accounts and reports
the amount of additional sales and use tax revenue that would have been
realized from sales of food and food ingredients within each such STAR
bond project district for the months of January 2024 through June 2025, if
the state rate for the Kansas retailers' sales tax provided in K.S.A. 79-3603,
and amendments thereto, and the Kansas compensating use tax provided in
K.S.A. 79-3703, and amendments thereto, on the sale of food and food
ingredients had been 6.5%. On or before September 1, 2025, the director
of accounts and reports shall certify to the state treasurer the amounts so
certified by the secretary and shall transfer from the state general fund to
the STAR bonds food sales tax revenue replacement fund the aggregate of
all amounts so certified. On or before October 15, 2025, the state treasurer
shall pay from the STAR bonds food sales tax revenue replacement fund to
the appropriate city or county bond finance, debt service or reserve fund in
the amount certified to the director of accounts and reports for each city or
county.
(b) (1) On or before September 15, 2025, and on or before the 15
th
day of each month thereafter, for each STAR bond project district
established prior to December 31, 2022, the secretary of revenue, in
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

HB 2292 2
consultation with the governing body of each such city or county, shall
certify to the director of the budget and the director of accounts and reports
the amount of sales tax revenue that would have been realized from sales
of food and food ingredients during the entirety of the second month
preceding the month in which such certification is made, commencing on
September 15, 2025, for the entirety of the month of July 2025, if the state
rate for the Kansas retailers' sales tax provided in K.S.A. 79-3603, and
amendments thereto, and the Kansas compensating use tax provided in
K.S.A. 79-3703, and amendments thereto, on the sale of food and food
ingredients had been 6.5%.
(2) On or before September 30, 2025, and on or before the last day of
each month thereafter, the director of accounts and reports shall certify to
the state treasurer the amounts certified pursuant to paragraph (1) for the
entirety of the second month preceding the month in which such
certification is made, commencing on September 30, 2025, for the entirety
of the month of July 2025.
(3) On or before October 15, 2025, and on or before the 15
th day of
each month thereafter, the state treasurer shall transfer from the state
general fund to the STAR bonds food sales tax revenue replacement fund
the aggregate of amounts for each STAR bond project district certified by
the director of accounts and reports pursuant to paragraph (2). The state
treasurer shall pay from the STAR bonds food sales tax revenue
replacement fund the amount certified pursuant to paragraph (2) for each
such STAR bond project district to the appropriate city or county bond
finance, debt service or reserve fund.
(c) The secretary of revenue shall determine, with respect to each
STAR bond district established prior to December 31, 2022, when the
amount of sales tax and other revenues that have been collected and
distributed to the city or county bond finance, debt service or reserve fund,
including transfers pursuant to this section, is sufficient to satisfy all
principal and interest costs to the maturity date or dates, of any special
obligation bonds issued prior to December 31, 2022, with respect to such
district. Thereafter, no further certifications or transfers of funds as
provided by this section shall be made for such STAR bond project
district.
(d) There is hereby created in the state treasury the ST