Topeka ? Legislators finished work Wednesday on a bill phasing out property taxes on business machinery and equipment, sending it to the governor.

The business tax measure enjoyed bipartisan support, 28-11 in the Senate and 109-10 in the House, even though some legislators worried it could prove expensive to cities and counties.

The votes came on the Legislature’s final day of its wrap-up session.

Business groups have been pushing for relief for more than a decade, and Gov. Kathleen Sebelius submitted a proposal to lawmakers this year. She intends to sign the bill.

Sebelius and supporters of the business machinery bill promoted the measure as a way to stimulate economic development. Most of the tax goes to city and county governments.

“What we’ve been told for years is that we have an impediment for businesses updating their inventory, bringing their markets up to speed,” Sebelius said. “I think the balance that’s been found in the Legislature with the elimination of this tax and making sure that the burden doesn’t just cause local governments to shift property taxes onto other taxpayers is a good one.”

The tax bill, also drafted by legislative negotiators, would grant an exemption from property taxes to businesses for the new machinery and equipment they buy, starting July 1. The exemption would apply not only to heavy industrial machinery, but also to office fixtures such as chairs, desks and computers.

Eventually, when all machinery and equipment purchased before July 1 was replaced, businesses would pay no property taxes on those items.

Marlee Carpenter, lobbyist for the Kansas Chamber, said millions of dollars of new investments have been on hold waiting for the bill to pass.

“Removing the property tax will help spur the Kansas economy,” Carpenter said. “We don’t know how much, but it is a positive step in the right direction for Kansas.”

Legislative researchers estimated that cities and counties would lose $632 million in property tax revenues over the next six years. The measure promises local governments $269 million in state aid during the same period.

Critics of the bill said it would force cities and counties to increase property taxes on homeowners to make up for the property taxes they couldn’t impose on business machinery. Several rural senators said the tax break wouldn’t spur much development in their districts.

“The people I represent have little to gain from this bill and a lot to lose if this doesn’t work,” said Senate Majority Leader Derek Schmidt, R-Independence.