Legislation to halt incentive war with Kansas on its way to Governor Nixon’s desk

Legislation that would end tax incentives for businesses that cross state lines within the Kansas City Metro area, Senate Bill 635, was truly agreed and finally passed, sending it to the governor’s desk for signature. The bill seeks to end the “Border War” with neighboring Kansas.

This legislation Sponsored by Sen. Ryan Silvey, R-Kansas City, would end incentives for businesses moving between specific KC metro-area counties.

“This is an opportunity to partner with Kansas in keeping jobs in each of our states and end the border hopping in order to receive incentives,” said Dan Mehan, Missouri Chamber president and CEO. “We have been supportive of this legislation from the beginning and we applaud Sen. Silvey and the General Assembly on getting this passed.”

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 House Speaker Tim Jones, R-Eureka, and Rep. Kevin McManus, D-Kansas City.

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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.

Hall Family Foundation study shows Missouri has lost $217 million in taxes in border war

Legislation that would end tax incentives for businesses that cross state lines within the Kansas City Metro area was heard before the House Small Business Committee and the  Senate Jobs, Economic Development and Local Government Committee this week, sparking coordination between lawmakers seeking to end the ‘Border War’ with neighboring Kansas.

Bill Hall, president of the Hall Family Foundation, testifies in front of a Missouri Senate Committee.

Bill Hall, president of the Hall Family Foundation, testifies in front of a Missouri Senate Committee.

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.

Legislation offered by Jones and Sen. Ryan Silvey, R-Kansas City, would end incentives for businesses moving between specific KC metro-area counties. Silvey sponsors Senate Bill 635.

Bill Hall presented a study by the Hall Family Foundation that found Kansas and Missouri have waived $217 million of taxes through two programs to shuffle businesses in recent years. Bill Hall, the foundation’s president, testified in favor of both the Senate and House versions of the bill.

“We are waging a wasteful economic development border war – and both states are losing,” Hall testified. “We do not oppose the use of incentives such as Missouri Works when they create new economic activity. We do oppose the wasteful use of incentives when they shuffle existing jobs and produce little or no economic development.”

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 in both the House and Senate is contingent on Kansas enacting an identical law.

“By working with our counterparts in Kansas rather than against them, it’s my hope we could end this boarder war,” Jones said.

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

Rep. Kevin McManus has also sponsored House Bill 1515, which is a companion bill to Speaker Jones’ bill.

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

The House Small Business Committee has scheduled an executive session to vote Jones’ bill out next week to move it along for further discussion.

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