Senate committee considers Border War legislation to halt job loss to Kansas

Legislation that would end tax incentives for businesses that cross state lines within the Kansas City Metro area was heard before the  Senate Jobs, Economic Development and Local Government Committee this week, seeking to end the ”Border War” with neighboring Kansas.

House Speaker Tim Jones, R-Eureka, who sponsors House Bill 1646, testified that businesses in the Kansas City area are collecting generous incentives from both states by “shuffling” existing jobs across state lines without creating any new, net job growth.

This legislation offered by Jones would end incentives for businesses moving between specific KC metro-area counties.

Kansas counties Douglas, Johnson, Miami, and Wyandotte and Missouri counties Jackson, Clay, Platte, and Cass are included in the bill. Any business moving from one of these counties across state lines into another would be ineligible for incentives. The legislation is contingent on Kansas enacting an identical law.

The bill also does not affect expanding businesses, but is specifically targeted to businesses that are relocating between the two states.

Similar bills have been sponsored by Rep. Kevin McManus and Sen. Ryan Silvey. The committee took no action on the bill.

The Missouri Chamber is supportive of this legislation and Tracy King, vice president of governmental affairs, testified on behalf of the bill.

For more information about tax issues, please contact Tracy King at tking@mochamber.com or by phone at 573-634-3511.

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