TIF Overview for Kansas Economic Development Directors

Kansas’s passage of the Taxpayer Agreement Act (HB 2737) has added a significant new capability to the state’s already strong TIF toolkit. For Economic Development Directors managing active developer pipelines, this overview covers the framework and how it fits into your work.

Kansas TIF: The Framework

TIF in Kansas operates under KSA 12-1770 et seq. Cities can capture ad valorem property tax increment, local sales tax increment, and franchise fee revenue to fund eligible public infrastructure costs for up to 20 years. Special obligation bonds under KSA 12-1774(a) are payable solely from pledged revenues — not backed by the city’s general credit. The 20 mills for school districts and 1.5 mills for the state are protected from capture. Eligible areas include blighted areas, conservation areas, buildings 65 years or older, and several specialized categories.

What HB 2737 Adds

The Taxpayer Agreement Act introduces taxpayer agreements (binding developer guarantees enforceable as delinquent real estate taxes), conduit bond authority (city has no obligation to advance funds), and a requirement for written mortgage holder consent before entering a taxpayer agreement. For ED Directors, this means you can offer developers a structure with upfront capital certainty and enforceable security — a combination few competing cities can match.

How This Helps You Close Deals

Developer-backed TIF Bonds with taxpayer agreements give developers upfront cash when they sell the bond to Hageman Capital. Kansas’s multi-revenue-stream framework enhances the bond’s value. The feasibility study requirement, two-thirds supermajority vote, and planning commission review provide the procedural foundation your governing body needs to approve with confidence. Your job is to navigate this process efficiently and present deals that are defensible, competitive, and structured for success.

Hageman Capital as Your Resource

We work alongside Kansas ED Directors as a free TIF structuring resource. Connect with Whitney Peterson to discuss your pipeline.