Kansas 2025-2026 Regular Session

Kansas Senate Bill SB98

Introduced
1/29/25  
Refer
1/30/25  
Report Pass
2/13/25  
Engrossed
2/19/25  
Refer
2/19/25  
Report Pass
3/7/25  
Enrolled
4/11/25  

Caption

Providing a sales tax exemption for the construction or remodeling of a qualified data center in Kansas and the purchase of data center equipment, eligible data center costs and certain labor costs to qualified firms that commit to a minimum investment of at least $250,000,000 and meet new Kansas jobs and other requirements.

Impact

The bill's provisions would notably amend existing state laws regarding financial assistance and tax incentives related to data centers. It proposes that public utilities are prohibited from offering discounted economic development electric rates specifically for customers constructing new or expanded data centers. Consequently, this could centralize the regulatory framework governing the establishment and operation of data centers, making it more streamlined for investors while potentially limiting the flexibility local utilities have in fostering business relationships.

Summary

Senate Bill No. 98 pertains to the establishment of a sales tax exemption for the construction or remodeling of qualified data centers in Kansas. It requires qualifying firms to make a minimum investment of $250 million and create at least 20 new jobs. This economic development initiative is designed to attract significant investment in data centers, which are critical for digital infrastructure. By providing financial incentives such as tax exemptions, the bill aims to boost the local economy and employment rates in the region, encouraging technological advancements and modern facility construction.

Sentiment

General sentiment surrounding SB98 aligns with a pro-business outlook, as proponents see the legislation as crucial for positioning Kansas as a competitive location for data center operations, which have risen in demand due to increased digitization. However, there may be concerns from critics about the adequacy of the measures to ensure that such developments cater to the workforce needs and community interests in public infrastructure and service quality. The sentiment may vary among stakeholders, with local governments possibly worried about losing authority over certain economic incentives to facilitate local developments.

Contention

Notable points of contention involve the balance between offering significant tax incentives to attract large investments and ensuring that local needs and infrastructure services are not compromised during this expansion. Some stakeholders may question whether the substantial upfront financial commitments required in the bill could deter smaller firms or serve predominantly larger corporations. Additionally, scrutiny will likely be placed on how effectively the Kansas intelligence fusion center will be in overseeing the security and compliance aspects of approved data centers as part of the approval process for financial assistance.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2002

Expanding medical assistance eligibility and enacting the cutting healthcare costs for all Kansans act.

KS SB6

Providing a sales tax exemption for sales of electricity to residential premises by municipally owned or operated utilities.

KS HB2003

Establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, modifying the definition of household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased property tax claims and citing the section as the homeowners' property tax freeze program, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value, providing for certain exclusions from the prohibition of paying taxes under protest after a valuation notice appeal and providing four prior years' values on the annual valuation notice.

KS SB1

Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, increasing the income tax credit amount for household and dependent care expenses, decreasing the privilege tax normal tax, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value for property tax valuation purposes, increasing the extent of property tax exemption for residential property from the statewide school levy, providing for certain transfers to the state school district finance fund and abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund.

KS SB8

Exempting the sale of firearms, firearms accessories, ammunition, firearm safes and firearm safety devices from the retatilers' sales tax.

KS HB2001

Authorizing the secretary of commerce to enter into agreements with major professional sports franchises to establish STAR bond projects for a major professional sports complex, providing for additional revenue sources, expanding the powers and discretion of the secretary and making other changes to the STAR bonds financing act to facilitate such projects, limiting the secretary’s authority to approve such projects to one year unless extended by the legislative coordinating council, authorizing the Kansas development finance authority to issue STAR bonds for such projects, transferring funds under certain circumstances from the state gaming revenues fund to the attracting professional sports to Kansas fund for the fiscal year ending June 30, 2025, and, if approved by the legislative coordinating council, for the fiscal year ending June 30, 2026.

KS SB2

Eliminating the income limit to qualify for the subtraction modification exempting social security benefits, increasing the income tax credit amount for household and dependent care expenses, establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, citing the increased property tax homestead refund claim section as the homeowners' property tax freeze program, decreasing the normal privilege tax rate, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district; providing for certain transfers to the state school district finance fund, reducing the state rate of tax on sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.

KS SCR1604

Proposing to amend section 1 of article 11 of the constitution of the state of Kansas to limit property tax valuation increases for real property and personal property mobile homes.

KS SCR1602

Approving the creation of a port authority in Wyandotte County Kansas.

KS SCR1603

Proposing to amend section 1 of article 11 of the constitution of the state of Kansas to limit property tax valuation increases for residential property.

Similar Bills

No similar bills found.