KS SB490

Municipalities may impose a new privilege tax of up to 1% (in 0.10% or 0.25% increments) on gross receipts from sales of alcoholic beverages, food, food ingredients, and tobacco within community improvement districts

Tax revenue must finance district projects through bonds or pay-as-you-go financing, with the tax expiring when bonds mature or 22 years after collection begins for pay-as-you-go projects

The Kansas Department of Revenue will administer and collect the tax, retaining 2% of collections (capped at $50,000 annually) for administrative costs before remitting the remainder to municipalities quarterly

Consumers pay the tax to sellers, who remit it monthly to the state; the standard food sales tax exemption under K.S.A. 79-3606(a) does not apply to items subject to this privilege tax

Districts may be created or modified when owners of more than 55% of land area (by both acreage and assessed value) petition the municipality, with legal challenges barred after 30 days from publication of the authorizing ordinance