Johnson County tax proposal would provide KU funding

Elements of the tax proposal

What Senate Bill 375 would do:

¢ Allow the Johnson County Commission within two years to decide whether to submit to voters the question of creating the Johnson County Education Research Triangle Authority.

The authority could impose a sales tax of up to two-tenths of a cent, a property tax of up to 2 mills, or both, provided the combination of revenue did not exceed the lesser amount of either tax by itself.

The authority would have seven members, all from Johnson County, who would be appointed by the governor, Kansas Board of Regents, Johnson County Community College Board, Johnson County Commission, the president of Kansas State University, and Kansas University’s chancellor, who would name two.

The authority would remit tax funds in equal shares for the KU Edwards Campus, and the Johnson County locations of Kansas State University and KU Medical Center.

¢ Allow Johnson County an additional one-quarter cent sales tax increase for construction costs of public safety facilities.

¢ Allow Franklin, Miami and Linn counties an additional 1-cent sales tax for construction or remodeling of courthouses, jails, law enforcement facilities or other county administrative facilities. Voter approval would be required prior to imposition of the tax increase.

A proposal to increase taxes in Johnson County would provide funds for the Kansas University Cancer Center and Edwards Campus.

But the measure requires approval by the Legislature, and it is mired in a political fight among some Johnson County elected leaders.

Some House Republicans have tried to put procedural brakes on the bill, while Sen. Barbara Allen, R-Overland Park, is trying to push it through.

“I think the chances of passage are excellent,” said Allen, who is chairwoman of the Senate tax committee.

Senate Bill 375 would allow Johnson County to establish the Johnson County Education Research Triangle Authority, which would be funded with an increase in that county’s sales tax of up to two-tenths of a cent, or a property tax increase of up to 2 mills, or a combination of both that could not exceed the revenue generated by the lesser amount of either one.

Essentially, the authority could raise between $15 million and $23 million per year and use those funds for building and operating three new higher education facilities.

Those proposed facilities include a clinical trials unit in northeast Johnson County for the KU Cancer Center; a classroom and office building for the KU Edwards campus; and a building at Kansas State University’s location in Olathe.

The bill also would allow a one-quarter cent sales tax increase to finance jail expansion and other public safety facilities in Johnson County.

The tax increases are not automatic. Johnson County commissioners would have to decide whether to place the proposals on the ballot, and a majority of voters would have to approve each proposal.

“These sales tax proposals are about giving the voters of Johnson County the right to decide for themselves whether they want to tax themselves,” Allen said.

Bob Regnier, a co-chairman of a group pushing for the Johnson County Education Research Triangle Authority, said the tax funds would “enhance all of the current efforts in Kansas and the metropolitan area for the life sciences.”

But House Majority Leader Ray Merrick, R-Stilwell, said he was skeptical of groups coming to the Legislature seeking tax increases.

He said well-financed interests were behind the legislation and would bankroll big campaigns to get voters to adopt the tax increases.

“These groups have a pile of cash. They buy elections, and I think that’s wrong,” he said.

At this point, SB 375 has gained Senate approval on a 36-4 vote. It remains stalled in the House, but Allen promised to bring the issue up during House-Senate negotiations next week on tax issues.

Because the measure has been approved by one chamber, it can be inserted in a conference committee bill, she noted.