Which counties were added to the Rural Opportunity Zone program in 2013?

Plain-English summary

Kansas Notice 13-13 (July 1, 2013) expands the Rural Opportunity Zone (ROZ) program by adding 23 counties.

Background. The 2011 Legislature (Senate Bill 198) created ROZ, giving certain out-of-state taxpayers who relocate to designated counties an income tax credit under K.S.A. 79-32,267 -- effectively an income tax exemption for certain qualifying years (see Notice 11-03).

The 2013 change. Section 9 of 2013 House Bill 2059 amended K.S.A. 2012 Supp. 74-50,222 to add these counties:

• Allen, Anderson, Bourbon, Brown, Chase, Clay, Coffey, Doniphan, Ellsworth, Grant, Gray, Haskell, Jackson, Linn, Marshall, Meade, Morris, Nemaha, Neosho, Ottawa, Rice, Stevens and Wabaunsee

As of tax year 2013, these counties are ROZ counties, so the income tax credit is available to qualifying out-of-state taxpayers who relocate there and meet the K.S.A. 79-32,267 requirements. The notice reproduces the full updated statutory ROZ county list. (A later notice, 14-07, added still more counties.)

What this means for you

People moving to rural Kansas

• If you relocate from out of state to one of the newly designated counties in 2013 or later and meet the K.S.A. 79-32,267 requirements, you may qualify for the ROZ income tax credit.

Tax preparers

• Verify the county is on the current ROZ list and the client meets the relocation and residency requirements.

Common questions

How many counties were added? 23, listed above.

When did the addition take effect? Tax year 2013.

What is the ROZ benefit? An income tax credit under K.S.A. 79-32,267 that effectively exempts qualifying relocated taxpayers for certain years.

Where is the program's origin explained? In Notice 11-03 (creation under 2011 Senate Bill 198).

Citations and references

• K.S.A. 2012 Supp. 74-50,222 -- defines "rural opportunity zone"; amended by Section 9 of 2013 House Bill 2059 to add the counties.
• K.S.A. 79-32,267 -- the ROZ income tax credit for qualifying relocated taxpayers.
• 2013 House Bill 2059, Section 9 -- the amending legislation.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 13-13

Original ruling text

Policy & Research Phone: 785-296-3081
915 SW Harrison St FAX: 785-296-7928
Topeka KS 66612-1588 www.ksrevenue.org
Nick Jordan, Secretary Department of Revenue Sam Brownback, Governor
Richard Cram, Director

                                      NOTICE 13-13

             MORE COUNTIES DESIGNATED AS RURAL OPPORTUNITY ZONES
                                 (July 1, 2013)

  The 2011 Legislative Session passed Senate Bill 198 which designates 50 counties in

Kansas as Rural Opportunity Zones (ROZ). As part of the bill, certain out-of-state taxpayers
who relocate to these counties and meet certain criteria are provided an income tax credit. (See
K.S.A. 2012 Supp. 79-32,267, which effectively grants an income tax exemption for certain
qualifying years.) For additional information, see Notice 11-03.

 During the 2013 Legislative Session House Bill 2059 was passed and signed into law.

Section 9 of the Bill amends K.S.A. 2012 Supp. 74-50,222 to expand the number of counties
which have received the ROZ designation. The newly designated counties are:

 Allen, Anderson, Bourbon, Brown, Chase, Clay, Coffey, Doniphan, Ellsworth, Grant,
 Gray, Haskell, Jackson, Linn, Marshall, Meade, Morris, Nemaha, Neosho, Ottawa,
 Rice, Stevens and Wabaunsee

  As of tax year 2013, these newly designated counties will be considered as ROZ counties,

and the income tax credit mentioned above will be available for out-of-state taxpayers who
relocate to these counties, if the requirements set forth in K.S.A. 79-32,267 are met.

   The new language, found in the amendment to subsection (b) of K.S.A. 2012 Supp. 74-

50,222, changes the definition of "rural opportunity zone". It provides as follows (new counties
in italics):

       (b) "rural opportunity zone" means Allen, Anderson, Barber, Bourbon, Brown,
 Chase, Chautauqua, Cheyenne, Clark, Clay, Cloud, Coffey, Comanche, Decatur,
 Doniphan, Edwards, Elk, Ellsworth, Gove, Graham, Grant, Gray, Greeley,
 Greenwood, Hamilton, Harper, Haskell, Hodgeman, Jackson, Jewell, Kearny,
 Kingman, Kiowa, Lane, Lincoln, Linn, Logan, Marion, Marshall, Meade, Mitchell,
 Morris, Morton, Nemaha, Neosho, Ness, Norton, Osborne, Ottawa, Pawnee, Phillips,
 Pratt, Rawlins, Republic, Rice, Rooks, Rush, Russell, Scott, Sheridan, Sherman,
 Smith, Stafford, Stanton, Stevens, Trego, Thomas, Wabaunsee, Wallace, Washington,
 Wichita, Wilson or Woodson counties;

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                                  Taxpayer Assistance

Additional copies of this notice, forms or publications are available from our web site,
www.ksrevenue.org. If you have questions about this Notice, please contact:

                              Taxpayer Assistance Center
                             Kansas Department of Revenue
                             915 SW Harrison St., 1st Floor
                               Topeka, KS 66612-1588
                                 Phone: 785-368-8222
                                  Fax: 785-291-3614

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