Which counties were added to the Rural Opportunity Zone program in 2014?

Plain-English summary

Kansas Notice 14-07 (July 1, 2014) expands the Rural Opportunity Zone (ROZ) program to four more counties.

Background. The 2011 Legislature (Senate Bill 198) created ROZ, designating rural counties in which certain out-of-state taxpayers who relocate and meet the criteria of K.S.A. 79-32,267 receive an income tax credit -- effectively an income tax exemption for certain qualifying years. See prior Notice 11-03. The 2013 Legislature (House Bill 2059) expanded the list; see Notice 13-13.

The 2014 change. 2014 House Bill 2643 (Section 19) amended K.S.A. 2013 Supp. 74-50,222 to add these counties as ROZ counties:

• Cherokee, Labette, Montgomery and Sumner

As of tax year 2014, these counties are ROZ counties, so the income tax credit becomes available to qualifying out-of-state taxpayers who relocate there and meet the requirements of K.S.A. 79-32,267. The notice reproduces the full updated statutory ROZ county list.

What this means for you

People considering a move to rural Kansas

• If you move from out of state to Cherokee, Labette, Montgomery or Sumner county in 2014 or later and meet the K.S.A. 79-32,267 requirements, you may qualify for the ROZ income tax credit.

Tax preparers

• Confirm the county is on the current ROZ list and that the client meets the residency and relocation requirements before claiming the credit.

Common questions

Which counties were added? Cherokee, Labette, Montgomery and Sumner.

When does the addition take effect? Tax year 2014.

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 history described? In prior Notices 11-03 (creation) and 13-13 (earlier expansion).

Citations and references

• K.S.A. 2013 Supp. 74-50,222 -- defines "rural opportunity zone"; amended by Section 19 of 2014 House Bill 2643 to add the four counties.
• K.S.A. 79-32,267 -- the ROZ income tax credit for qualifying relocated taxpayers.
• 2014 House Bill 2643, Section 19 -- the amending legislation.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 14-07

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 14-07

                More Counties Designated As Rural Opportunity Zones
                                   (July 1, 2014)

  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 amended K.S.A. 2012 Supp. 74-50,222 to expand the number of counties
which have received the ROZ designation. For additional information, see Notice 13-13.

  During the 2014 Legislative Session House Bill 2643 was passed and signed into law.

Section 19 of the Bill amends K.S.A. 2013 Supp. 74-50,222 to expand the number of counties
which have received the ROZ designation. The newly designated counties are:

 Cherokee, Labette, Montgomery and Sumner

  As of tax year 2014, 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. 2013 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, Cherokee, 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, Labette, Lane, Lincoln, Linn, Logan, Marion, Marshall, Meade,
 Mitchell, Montgomery, Morris, Morton, Nemaha, Neosho, Ness, Norton, Osborne,
 Ottawa, Pawnee, Phillips, Pratt, Rawlins, Republic, Rice, Rooks, Rush, Russell,

 Scott, Sheridan, Sherman, Smith, Stafford, Stanton, Stevens, Sumner, Trego, Thomas,
 Wabaunsee, Wallace, Washington, Wichita, Wilson or Woodson counties;

                               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