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Kansas City Council approves limit on tax incentives

By Madison Parry

A unanimous vote from the full Kansas City Council on Thursday has passed legislation reducing tax incentives for developers as well as shortening the timeframe on abatement for projects. Incentives are now capped at 70 percent for 10 years, previously 75 percent.

Within the next 120 days or less, a new ordinance approved by the full Kansas City Council on Thursday will limit the amount of incentives for area developers as well as the maximum term for property tax abatements.

A unanimous vote has agreed that new legislation will allow developers to receive up to 70 percent abatement for 10 years, previously 75 percent.

The reduction has also reduced incentives to 30 percent abatement for five more years, following 70 percent for 10 years.

Previously, this was capped at 37.5 percent for the following 15 years, after 75 percent for 10 years.

Exceptions apply to the changed ordinance for projects such as those located in high-frequency transit corridors, providing affordable housing, involving manufacturing or distribution centers and others.

The changes will take effect with the adoption of a revised AdvanceKC scorecard from the city or within 120 days, whichever arrives first.