Two years after Missouri passed legislation aimed at alleviating the effects of its economic “border war” with its neighbor to the west, Kansas Gov. Sam Brownback said Thursday his state will stop offering certain business tax incentives that have helped fuel the economic development clash.
For years in the so-called border war, Kansas and Missouri have poached businesses from just across the state line, using incentives that have cost the states millions in tax revenue but brought little net boost to employment in the Kansas City area.
Under Brownback’s proposal, a renewable one-year plan, programs that allow companies to keep employee state income taxes for several years would not be offered to firms that lease space when they relocate across the state line. However, the incentives could be used for any net new jobs created.
It would take action from the Missouri General Assembly for Brownback’s proposal to go into effect, and lawmakers in Jefferson City have less than a month left in their 2016 legislative session.
Read more: Kansas City Star