1108             1997 Session Laws of Kansas             Ch. 159

Chapter 159


An Act concerning the enterprise zone law; amending K.S.A. 1996 Supp. 74-50,114 and
repealing the existing section.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 1996 Supp. 74-50,114 is hereby amended to read
as follows: 74-50,114. As used in K.S.A. 74-50,113 through 74-50,117 and
amendments thereto:

(a) ``Ancillary support'' means a facility which is operated by a busi-
ness and whose function is to provide services in support of the business,
but is not directly engaged in the business' primary function.

(b) ``Business'' means any manufacturing business or nonmanufac-
turing business.

(c) ``Business headquarters'' means a facility where principal officers
of the business are housed and from which direction, management or
administrative support for transactions is provided for a business or di-
vision of a business or regional division of a business.

(d) ``Full-time employee'' means a person who is required to file a
Kansas income tax return and who is employed by a business or retail
business to perform duties in connection with the operation of the busi-
ness or retail business on:

(1) A regular, full-time basis;

(2) a part-time basis, provided such person is customarily performing
such duties at least 20 hours per week throughout the taxable year; or

(3) a seasonal basis, provided such person performs such duties for
substantially all of the season customary for the position in which such
person is employed. The number of full-time employees during any tax-
able year shall be determined by dividing by 12 the sum of the number
of full-time employees on the last business day of each month of such
taxable year. If the business or retail business is in operation for less than
the entire taxable year, the number of full-time employees shall be de-
termined by dividing the sum of the number of full-time employees on
the last business day of each full calendar month during the portion of
such taxable year during which the business was in operation by the num-
ber of full calendar months during such period.

(e) ``Manufacturing business'' means all commercial enterprises iden-
tified under the manufacturing standard industrial classification codes,
major groups 20 through 39.

(f) ``Metropolitan county'' means the county of Douglas, Johnson,
Leavenworth, Sedgwick, Shawnee or Wyandotte.

(g) ``Nonmanufacturing business'' means any commercial enterprise
other than a manufacturing business or a retail business. Nonmanufac-
turing business shall also include the business headquarters of an enter-
prise, ancillary support of an enterprise, and an enterprise designated

Ch. 159             1997 Session Laws of Kansas             1109

under standard industrial classification codes 5961, 7948-0201 or 7372
regardless of the firm's classification as a retail business if that facility for
which the sales tax exemption certificate is issued facilitates the creation
of at least 20 new full-time positions. In addition, with respect to enter-
prises in standard industrial classification code 7948-0201, such enter-
prises must operate an auto racetrack in the state involving capital im-
provements costing not less than $100,000,000 .

Any ancillary support business which would otherwise be eligible for a
sales tax exemption or an income or privilege tax credit pursuant to this
subsection shall incorporate in its tax filing for the exemption or credit a
statement from the secretary of commerce and housing which includes a
finding by the secretary that the job expansion incident to the exemption
or credit claimed would not have occurred in the absence of the credit
or exemption.

(h) ``Nonmetropolitan region'' means a region established under
K.S.A. 74-50,116 and amendments thereto and is comprised of any county
or counties which are not metropolitan counties.

(i) ``Retail business'' means: (1) Any commercial enterprise primarily
engaged in the sale at retail of goods or services taxable under the Kansas
retailers' sales tax act; (2) any service provider set forth in K.S.A. 17-2707,
and amendments thereto; (3) any bank, savings and loan or other lending
institution; (4) any commercial enterprise whose primary business activity
includes the sale of insurance; and (5) any commercial enterprise deriving
its revenues directly from noncommercial customers in exchange for per-
sonal services such as, but not limited to, barber shops, beauty shops,
photographic studios and funeral services.

(j) ``Secretary'' means the secretary of the Kansas department of com-
merce and housing.

(k) ``Standard industrial classification code'' means a standard indus-
trial classification code published in the Standard Industrial Classification
manual, 1987, as prepared by the statistical policy division of the office
of management and budget of the office of the president of the United
States of America.

Sec. 2. K.S.A. 1996 Supp. 74-50,114 is hereby repealed.

Sec. 3. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved May 9, 1997.

Published in the Kansas Register: May 15, 1997.