Bill > HB2292

This bill addresses the financial impact of changes to food sales tax on STAR bond districts established before December 31, 2022. STAR bonds are a special financing mechanism for economic development projects. The bill creates a new STAR bonds food sales tax revenue replacement fund to compensate cities and counties for lost sales tax revenue due to legislative changes reducing the sales tax on food and food ingredients. Starting July 1, 2025, the secretary of revenue will certify the amount of sales tax that would have been collected if the food sales tax rate had remained at 6.5%. The state treasurer will then transfer funds from the state general fund to the new replacement fund, which will be distributed to the appropriate city or county to support bond payments. The bill also extends the sunset date of the STAR bonds financing act from July 1, 2026, to July 1, 2031, giving these districts additional time to complete their economic development projects. The purpose is to ensure that existing STAR bond districts are not financially harmed by the reduction in food sales tax rates, allowing them to continue meeting their bond obligations and development goals.

Business and Industry

Commerce, Labor and Economic Development (House)

https://kslegislature.gov/li/b2025_26/measures/hb2292/