May 22, 2006

Sebelius action will spur economy, create jobs
Bill eliminates property taxes on new business machinery and equipment

WICHITA, Kan. – At the Prosperity Summit here in December, Governor Kathleen Sebelius proposed giving employers an incentive to invest in new technology and create jobs in Kansas.

Today, Sebelius was joined by business leaders as she returned to Wichita to sign into law the elimination of property taxes on new business machinery and equipment she called for in December, and again in her State of the State address.

“More than any other initiative, this tax relief has the potential to spur job creation in Kansas, and I’m thrilled to be back in Wichita to sign it into law,” said Sebelius. “Kansas employers will now be able to invest in the new technology they need to compete with their counterparts all over the world, which will help them grow their businesses and create jobs.”

HB 2583 eliminates property taxes on business machinery and equipment purchased after July 1, 2006. The bill also raises the exemption for “low-cost” items from $400 to $1,500, which will reduce paperwork. Finally, it provides assistance to local governments to compensate for the loss of local tax revenues.

“We’ll now be able to build on our already outstanding business climate, which was rated in the Top 10 of all states earlier this year. This will help us continue the job growth we’ve seen in 24 of the last 26 months, which has lowered the unemployment rate to the lowest it’s been since December of 2001,” Sebelius said, referring to the April rate of 4.2 percent.

The bill signing came during a day of jobs-related activities in Wichita.

Immediately following Sebelius’ signing of the tax relief bill, Viega, a plumbing technology manufacturer, announced it will open a headquarters in Wichita and expand its operations in McPherson. The new headquarters is expected to create 100 new jobs, while the plant expansion is estimated to grow its current workforce to 375 over the next several years.

“These new jobs are a testament to the skill of Kansas workers, and to our favorable business climate which is attracting companies from all over the world,” Sebelius said.

Later this afternoon, Governor Sebelius will sign a reaffirmation of friendly relations between Kansas and Henan Province in the People’s Republic of China. Joining in the signing ceremony will be Governor Li Chengyu, Governor of Henan Province, who is leading a delegation to Kansas to celebrate the 25th anniversary of the sister-state relationship.

Last year, Sebelius led a delegation to China to build relationships between Kansas businesses and potential customers. That trip has already led to business agreements for Kansas employers, such as the deal Olathe-based Global Ground Support signed to supply $4.2 million in de-icing equipment to Chinese airports.