Kansas TIF

The Kansas Tax Increment Financing (TIF) statutes are primarily codified in Chapter 12, Article 17 of the Kansas Statutes Annotated (K.S.A. 12-1770 et seq.), known as the Tax Increment Financing Act. This framework allows cities (municipalities) in Kansas to establish redevelopment districts and use TIF as a tool to finance public redevelopment projects in blighted, deteriorating, or underutilized areas. Only cities have this authority under the statutes—not counties or other entities.

Key Purpose and Overview

• K.S.A. 12-1770 declares the act's purpose: to promote economic welfare, stimulate development, and redevelop eligible areas (within or outside city limits in some cases) for the public good. It authorizes cities to acquire property (including via eminent domain if necessary), undertake redevelopment projects, and issue two main types of bonds:
  • Special obligation bonds (payable solely from specific revenues, not general city credit).
  • Full faith and credit tax increment bonds (backed by the city's general taxing power as a fallback, with stricter requirements like feasibility studies and potential voter approval).

TIF works by capturing the increment—the increase in ad valorem (property) tax revenues above a base year valuation within the designated redevelopment district. These incremental revenues are diverted to a special fund to pay for project costs, bond debt service, or reimbursements (e.g., to developers on a pay-as-you-go basis), rather than going to overlapping taxing jurisdictions like schools or counties.Main Statutory SectionsThe core provisions are in K.S.A. 12-1770 through 12-1780d (with some related or supplemental sections). Key ones include:

• 12-1770: Purpose, bond issuance authority.
• 12-1770a: Definitions (e.g., for redevelopment projects, bioscience developments, etc.).
• 12-1771: Procedure for establishing redevelopment districts, including findings of blight/need, public hearings, and creation criteria.
• 12-1772: Feasibility studies and project plan adoption.
• 12-1774: Detailed rules on issuing special obligation bonds and full faith and credit tax increment bonds, including permitted revenue sources (e.g., tax increments per 12-1775, pledged sales taxes, transient guest taxes, private contributions, state/federal funds), bond limits, recitals, and voter/approval processes in certain cases.
• 12-1775: Allocation and use of tax increments to the special fund.
• Other sections cover specific types (e.g., flood-plain districts in 12-1771e), bioscience projects, major tourism/motorsports complexes, reimbursements, and restrictions (e.g., temporary limits on state revenue replacement funds in some fiscal years).

Additional Notes

• TIF applies to industrial, commercial, residential, intermodal transportation, and certain bioscience or tourism-related projects.
• Project plans must demonstrate that benefits outweigh costs, and increments are expected to cover financing.
• There are procedural safeguards like public notice, hearings, and potential objections from affected taxing entities.
• For the most current, complete, and official text (including any recent amendments), refer to the Kansas Office of the Revisor of Statutes website:
  https://ksrevisor.gov/statutes/chapters/ch12/ (navigate to Article 17)
  or the Kansas Legislature site: https://www.kslegislature.gov/li (search statutes for Chapter 12, Article 17).

The Kansas Department of Commerce also provides a high-level overview of TIF as a redevelopment tool: https://www.kansascommerce.gov/program/taxes-and-financing/tif.If you need details on a specific section (e.g., eligibility criteria, bond issuance rules, or recent changes), let me know!

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Henry McClure 

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785-383-9994

www.henrymcclure.live