Taxpayer Agreement Act - Tax Increment Financing Alternative
Summary
Kansas HB2737, the Taxpayer Agreement Act, was signed into law by Governor Laura Kelly on April 6, 2026. The new law establishes an alternative method for tax increment financing (TIF) of municipal economic development projects through taxpayer agreements. The bill passed with strong legislative support, receiving final passage in the Senate 34-6 and House concurrence 121-3.
What changed
Kansas HB2737 enacts the Taxpayer Agreement Act, establishing a new statutory mechanism for tax increment financing of municipal economic development projects. The bill, sponsored by the House Committee on Commerce, Labor and Economic Development, provides an alternative approach to traditional TIF through taxpayer agreements. The legislation underwent amendment in both the House Commerce Committee and the Senate Local Government, Transparency and Ethics Committee before final passage.
Municipalities and economic development agencies in Kansas should review this new financing authority to determine whether the taxpayer agreement alternative offers benefits over existing TIF mechanisms. Construction firms, developers, and businesses operating in or considering projects within Kansas TIF districts should assess how this new framework may affect project financing structures and timeline planning.
What to do next
- Review Kansas HB2737 to understand the new taxpayer agreement mechanism for tax increment financing
- Assess whether existing or planned TIF projects may benefit from the alternative financing method established by the Act
- Consult with Kansas municipal authorities and economic development agencies regarding implementation timelines and requirements
Source document (simplified)
ChangeBridge / Kansas / HB2737 Signed by Governor HB2737 House Bill Signed by Governor 2026-04-09
Enacting the taxpayer agreement act to provide for an alternative method of tax increment financing of municipal economic development projects through taxpayer agreements.
Bill Details
State Kansas
Session 2025-2026 Regular Session
Chamber House
Official Source kslegislature.gov/li/b2025_26/measures/hb2...
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Sponsors
Commerce, Labor and Economic Development
Action History
2026-04-09 H House Approved by Governor on Monday, April 6, 2026 2026-03-26 H House Enrolled and presented to Governor on Friday, March 27, 2026 2026-03-23 H House Reengrossed on Friday, March 20, 2026 2026-03-19 H House Concurred with amendments; Yea: 121 Nay: 3 2026-03-18 S Senate Final Action - Passed as amended; Yea: 34 Nay: 6 2026-03-17 S Senate Committee of the Whole - Be passed as amended 2026-03-17 S Senate Committee of the Whole - Committee Report be adopted 2026-03-11 S Senate Committee Report recommending bill be passed as amended by Committee on Local Government, Transparency and Ethics 2026-03-05 S Senate Hearing: Thursday, March 5, 2026, 9:30 AM Room 142-S 2026-02-26 S Senate Referred to Committee on Local Government, Transparency and Ethics 2026-02-24 S Senate Received and Introduced 2026-02-18 H House Final Action - Passed as amended; Yea: 110 Nay: 14 2026-02-17 H House Committee of the Whole - Be passed as amended 2026-02-17 H House Committee of the Whole - Committee Report be adopted 2026-02-13 H House Committee Report recommending bill be passed as amended by Committee on Commerce, Labor and Economic Development 2026-02-10 H House Hearing: Tuesday, February 10, 2026, 1:30 PM Room 346-S 2026-02-05 H House Referred to Committee on Commerce, Labor and Economic Development 2026-02-05 H House Introduced
Votes
2026-02-18 House Final Action - Passed as amended - Yea: 110 Nay: 14 Yea: 110 Nay: 14 2026-03-18 Senate Final Action - Passed as amended - Yea: 34 Nay: 6 Yea: 34 Nay: 6 2026-03-19 House Concurred with amendments - Yea: 121 Nay: 3 Yea: 121 Nay: 3
Committee Referrals
2026-02-05 H Commerce, Labor and Economic Development 2026-02-26 S Local Government, Transparency and Ethics
Amendments
2026-02-13 House Committee on Commerce, Labor and Economic Development Report 2026-03-11 Senate Committee on Local Government, Transparency and Ethics Report
Bill Text Versions
2026-02-05 Introduced 0000-00-00 Amended 0000-00-00 Amended 2026-03-26 Enrolled Legislative data powered by LegiScan (CC BY 4.0)
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