Kansas Governor Laura Kelly signs tax cut, STAR Bonds package

KANSAS CITY, Kan. (KCTV) - The legislation Kansas lawmakers proposed in an attempt to lure the Chiefs or Royals into the Sunflower State has been signed into law.

Kansas Governor Laura Kelly announced Friday morning that she signed a pair of bills following a special session at the Statehouse in Topeka.

Kelly approved a bill centered around tax cuts that moves Kansas from three personal income tax rates to two, and it cuts the highest rate from 5.7% to 5.58%. Kansas also will stop taxing retirees’ Social Security benefits instead of taxing the entire amount once someone earns more than $75,000. The state also will double an income tax credit for child care expenses.

The measure also provides a 14% cut in the tax paid by banks, savings and loans and other financial institutions instead of the corporate income tax. That mirrors past cuts for other businesses.

Of wider regional interest, Kelly signed the STAR Bonds bill that has been the center of attention surrounding talks of the Kansas City Chiefs and Kansas City Royals exploring future stadium sites.

“We know that modernizing our economic development tools provides the opportunity to increase private investment into the state,” Kelly said. “By modifying the STAR Bonds program, one of our strongest economic development mechanisms, lawmakers crafted a viable option for attracting professional sports teams to Kansas.”

Kansas typically authorizes STAR Bonds for 50 percent of a project’s costs. This STAR Bond (which you can read below) would fund up to 75 percent of the project costs and would have a 30-year payback period, compared to 20 years for other STAR Bonds.

Sales Tax and Revenue (STAR) Bonds are a financing tool that allows Kansas municipalities to issue bonds to finance the development of major commercial, entertainment and tourism projects.

ALSO READ: What are STAR Bonds and how do they work?

Jackson County, Missouri, voters rejected a 3/8-cent sales tax proposal that would have gone toward funding a downtown ballpark for the Royals and renovation of Arrowhead Stadium.

In late April, Chiefs owner Clark Hunt said the organization is reassessing its options for the future, whether that be at Arrowhead Stadium or building a new venue.

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