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.

News Release: Missouri Senate endorses proposal to end Missouri/Kansas job poaching

JEFFERSON CITY, Mo. — For years, state economic development officials in Missouri and Kansas have been poaching jobs in the Kansas City area. Companies that agree to relocate across the state border have been able to access hundreds of millions of dollars in incentives that created little, if any, economic benefit for the region.

 Today, the Missouri Senate endorsed a plan to end this practice. The proposal is contained in Senate Bill 635, sponsored by Sen. Ryan Silvey, a Republican from Kansas City. This legislation would prohibit Missouri from offering various incentives to business relocating from the Kansas counties of Douglas, Johnson, Miami or Wyandotte to the Missouri counties of Cass, Clay, Jackson or Platte. If approved by the House and signed by the governor, the law would only go into effect when Kansas passes a similar law.

The Missouri Chamber of Commerce and Industry supports this legislation and thanks the Senate for approving the bill today.

“Development incentives are critical tools that encourage investment in Missouri. However, our incentives are a limited resource. We need to ensure we are targeting these incentives toward companies that are actually bringing new jobs to Missouri and our metropolitan regions,” said Daniel P. Mehan, president and CEO of the Missouri Chamber. “It’s time for Missouri and Kansas to stop seeing Kansas City as a battleground. Let’s work together to attract new investment into Kansas City in a way that benefits the metropolitan area in both states.”

The Missouri Chamber of Commerce and Industry (www.mochamber.com) was founded in 1923 and is the largest business organization in Missouri, representing almost 3,000 employers, providing more than 425,000 jobs for Missourians.