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Johnson County Commission chair candidates on the issues: Tax incentives

Earlier this summer, we asked our readers about the issues you wanted to hear the candidates running for Board of County Commissioners chair address in the lead up to the Nov. 8 general election.

Based on the input we received, we developed a five-item questionnaire for the two candidates running in this nonpartisan race to succeed outgoing commission chair Ed Eilert.
We’ll be publishing the candidates’ responses to one item per day each day this week.

We’ve already published their responses regarding election integrity, property taxes, and pandemic response in Johnson County. Today we’re publishing the candidates’ responses to our fourth question:

More and more developers are requesting tax increment financing when they bring proposals before Johnson County cities. Under state statute, the Board of County Commissioners has a 30-day window to veto the creation of TIF districts in the county. Critics say tax incentives amount to giving private businesses a handout. Proponents say development projects that ultimately benefit the community couldn’t move forward without them. What’s your view on the prevalence of the use of tax incentives on development projects here?

Mike Kelly Johnson County Commission chair candidates

A growing Johnson County is good for our community. Often, the fantastic quality of life and excellent public schools we offer will attract businesses without the need for incentives from the County or its municipalities. For example, as Mayor of Roeland Park, I was pleased to welcome two new world-class health care facilities to our city without the use of any tax incentives.

Sometimes, however, it does take money to make money. Some properties just don’t make sense for economic development without a level of buy-in from the community. There are those properties that – because of the physical landscape or site specific challenges – have sat vacant for decades, generating no tax revenue while putting a strain on our resources. In those cases, tax incentives are one tool that can be considered.

Additionally, Johnson County is competing on a national and international scale to host new, catalytic opportunities for our residents. These opportunities provide job growth and residual investments in the surrounding area, which uniquely shape and grow our community’s future. When incentives are used wisely in those cases, the costs of the investment will be more than recovered in increased economic impact.

Charlotte O’HaraJohnson County Commission chair candidates

We use incentives much too often. The BOCC should take their veto power over tax increment finance districts seriously instead of simply rubber stamping every project. The BOCC has NEVER vetoed a TIF district.

Also, I have asked leadership in the Kansas House to consider:

  1. 50% cap on all tax incentives (TIFS and IRBs-Industrial Revenue Bonds)
  2. Limit the term to 10 years, including TIFs which currently have a 20 term.
  3. A ten-year “use it or lose it” clause on all TIF projects within a TIF district.
  4. Expansion of a TIF district required to go through the entire approval process instead of being allowed to simply expand to contiguous property of an existing district.

Currently $84 million (in 2021 numbers) is being diverted from public coffers to big business’ pockets and the cost increases each year. These tax incentives are corporate welfare and cause property taxes to increase for the rest of the taxpayers..

On Friday we will publish the candidates’ responses to our last question:

“Climate change continues to be a major issue of concern for our readers. What steps should the county government be taking to build climate resiliency and prepare for more extreme weather events in Johnson County?”

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Staff Report
Staff Report

Staff reports are generally produced by one or more members of the Johnson County Post newsroom using information provided by a source or organization, typically in the form of a press release. The “Staff report” byline tends to indicate that little or no additional reporting has been done.

The “Staff report” byline is also used for housekeeping items on occasion.

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