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Proposal to limit tax incentives on new development advances

A Kansas City Council committee passed a proposal to limit tax incentives for new development and now advances to the full city council for a vote. If passed, the policy would limit the amount of incentives and lower the maximum length of time they can be given from 25 to 15 years.

This week, a vote from the Neighborhood, Planning and Development Committee advanced a proposal to limit tax incentives for new development in Kansas City, Mo.

After a vote of approval from the committee, the policy now advances to the full Kansas City Council for a vote.

If passed, the policy would limit the amount of incentives given as well as reduce the maximum length of time said incentives could be given out from 25 to 15 years. The full City Council will vote on the issue Thursday.

Currently, developers in the area can get a 75 percent tax abatement or have taxes redirected back to the developer for 10 years. According to a report from KCUR, they can get a 37.5 percent abatement for another 15 years.

With the new policy, it would change the limit to a 70 percent abatement for 10 years and a 30 percent abatement for another five years.

However, according to the report, tax incentives would not be limited if projects are in distressed areas or provide affordable housing, job growth, historic preservation, or industrial or distribution services.