Sunday, September 23, 2018
   
Text Size

taxes

 
Machinery and Equipment Property Tax Exemption
A state and local property tax exemption is available for new or used commercial and industrial machinery and equipment acquired by qualified purchase or lease, or transferred into the state for the purpose of expanding an existing facility or establishing a new facility after June 30, 2006. 
 
 
Real Property Tax Calculation
The Labette County Appraiser is responsible for setting appraised values.
Appraised Value x Classification rate = Assessed value x Mill levy = Property tax
$1,000,000 x 25% = $250,000 x 143.00 mills* = $35,750
 
Parsons Sales Tax
State of Kansas                  6.5%
Labette County                  1.25%
City of Parsons                   2.00%
TOTAL                              9.75%
 
 

 

incentives

 Parsons is a progressive community that works to develop generous incentive programs that are custom designed specifically to meet the needs of the prospective businesses interested in expanding or locating in Parsons. Incentive packages are based primarily on job creation, wages and overall investment in our community and can include tax abatement, low interest loans, grants, property, utility extensions or a combination of these incentives. For assistance accessing both state and local programs, please call the economic development office at (620) 421-7030 for support.

State
The Business Finance unit of the Kansas Department of Commerce offers a variety of programs including job creation tax credits, investment tax credits, sales tax project exemptions and revolving loans for local infrastructure.

Kansas Enterprise Zone
The Kansas Enterprise Zone Program provides potential Kansas sales tax exemption and Kansas income/privilege tax credits to some businesses creating new jobs in Kansas through major capital investment projects. The program provides a sales tax exemption for construction materials and certain equipment.

Property Tax Abatement Assistance
Assistance is provided to businesses and governmental entities applying for property tax abatement. Division staff liaisons with the Court of Tax Appeals, provides technical assistance on the application process, and runs a complimentary cost benefit analysis to ensure a COTA response within 30 days.

Industrial Revenue Bonds
Industrial Revenue Bonds are federally tax-exempt bonds that can lower financing costs for qualifying projects.

Overview
The 2009 Kansas Legislature passed Senate Bill 97 enacting the Promoting Employment Across Kansas (PEAK) incentive program, which allows qualified for-profit companies that are relocating jobs from outside Kansas to retain 95 percent of the payroll withholding tax of the relocated jobs over a period of five or more years.

Per K.S.A. 74-50,210 through 74-50,216, the Secretary of Commerce is designated to determine the eligibility of companies relocating functions and jobs to Kansas.

New Changes
In 2010, the legislature passed House Bill 2554, which significantly broadened qualified companies to include new businesses locating jobs in the state. Also, on January 1, 2012, existing Kansas businesses that are expanding and creating new jobs approved by the secretary are eligible to receive benefits. An annual cap of $4.8 million in benefits is placed on expanding businesses creating new jobs.

Changes also modified the qualifying wage standard from the county average wage to the county median wage or regional North American Industry Classification System (NAICS) industry average wage. Departmental discretion was added, allowing the secretary substantial latitude for approving qualified companies and determining PEAK awards.

Applications are accepted throughout the year and must be received prior to hiring PEAK jobs/employees in Kansas.

 

 

Large project assistance
Kansas Economic Opportunity Initiatives Funds
These funds are provided by the State Legislature to address unique opportunities or emergencies that may have substantial impact on the Kansas economy. Examples include major expansion of a Kansas business, potential location of a major employer in Kansas, or the closing of a major federal or state institution.

Investments in Major Projects and Comprehensive Training
The IMPACT program is designed to respond to the training and capital requirements of major business expansions and locations in the state. New projects must create 100 jobs while an expanding firm must retain 250 jobs.

Infrastructure
Kansas Partnership Fund
The Partnership Fund program provides loans to Kansas cities or counties for infrastructure improvements directly related to specific business projects creating new jobs and capital investment.

Workforce Training
High Performance Incentive Program
This program provides tax incentives to eligible employers that pay above-average wages and are committed to skills development for their workers. Eligible companies may receive sales tax exemption and corporate income tax credit up to 10% of their investment as well as credit for training expenditures.

Incumbent Worker Training
This program provides grants to employers to assist with certain expenses associated with skills upgrade training for full-time employees of the company.

Kansas Industrial Retraining Program
The KIR job retention program provides grants to restructuring companies whose employees are likely to be displaced due to obsolete or inadequate job skills or knowledge. This program assists restructuring companies wanting to retrain their employees. At least one existing employee must be trained to qualify for assistance.

Kansas Industrial Training Program
The KIT program provides funds to help new and expanding companies train workers for new jobs. Primary firms receiving assistance are manufacturing, distribution and regional or national service firms adding five or more new jobs.

Registered Apprenticeship
The Registered Apprenticeship program is designed to provide employers with a skilled workforce while training existing workers in the latest technologies without loss of production time.

City of Parsons Tax Abatements
The City of Parsons has adopted a formal policy regarding tax abatements granted within the city. Abatements may exempt a project from all, or a portion, of ad valorem taxes due on buildings, land and improvements. To qualify, companies must be involved in manufacturing, conducting research and development, or storing goods or commodities which are sold or traded in interstate commerce. Additions to, or expansions of, existing businesses qualify for the property tax exemption if new jobs are created as a result of such activity. Factors considered in awarding an abatement are amount of capital investment, number of employees, amount of wage, and a cost benefit analysis.

City of Parsons sponsored Industrial Revenue Bonds
Up to 100% of a business' land, buildings, and equipment can be financed with IRBs provided the cost of bond insurance is covered by the project. IRBs may be issued for manufacturing facilities, facilities owned by 501(c) corporations and low-income multifamily housing projects. They are securities issued by the city to provide the funds for credit-worthy companies to purchase land, pay the cost of constructing and equipping new facilities or purchase, remodel, or expand existing facilities. A limited amount of other developmental and financing activities, such as engineering, architectural, legal, and bond underwriting, may also be financed from bond proceeds. When industrial revenue bonds are issued as financing for a particular facility or for personal property, the city holds legal title to the facility or personal property while the bonds are outstanding and the facility is exempt from property taxation for that period, up to 10 years. In lieu of tax payments are often required during this time period by the city.

City of Parsons 4.25% Low Interest Loan Program
The City of Parsons has partnered with Rural Development, Federal Home Loan Bank of Topeka and our local lending institutions to create several low interest loan opportunities. These loans are available for real or personal property purchase, renovation projects and inventory expansion. Start-up businesses and expanding businesses are both eligilble. Loan amounts rage from a minimun or $15,000 and a maximum of $150,000 from the City's Revolving loan fund; this amount is matched 3:1 by local banks.

City of Parsons Retail Recruitment Grant
This incentive program is designed to attract new retailers to Parsons and to help existing retailers expand. The City offers $5,000 to $15,000 grants, these grants are matched by either owner equity or bank loan at a 3:1 ratio. The grant is paid after demonstration of initial matching equity or loan has been expended. Grant can be paid to vendors direct or reimbursement of documented expenses.

City of Parsons FHLB Revolving Loan Fund
The City of Parsons received two $25,000 grants from the Topeka Federal Home Loan Bank to create two revolving loan funds. The loans are for $5,000 and can be used by new businesses or existing business to grow or improve their business. The loans carry a 1% interest rate for a five year amortization and must be fully collateralized.