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Local Incentives

City of Overland Park Incentives

Incentives are available to companies that invest in Overland Park, meet individual incentive program criteria and receive formal approval from the government authorities who administer these programs.


A Natural Incentive

Overland Park’s property tax provides a natural incentive for commercial development. Due to the significant commercial tax base and careful fiscal management, Overland Park’s mill levy is the lowest of all first-class cities in Kansas. This provides for continual tax savings for businesses located in Overland Park.

Below is a comparison of similar communities in Kansas and their respective mill levy rates:

City

City Mill Levy (for 2013 budget)

Difference from Overland Park

Overland Park

12.769

-0-

Prairie Village

29.665 (Includes fire service levy of 10.178 mills)

16.898

Leawood

24.393

11.624

Shawnee

24.914

12.145

Olathe

24.558

11.789

Salina

26.190

13.421

Lawrence

29.534

16.765

Lenexa

29.668

16.899

Wichita

32.471

19.702

Topeka

35.838

23.069


Tax Abatement – Coupled with a sales tax exemption on construction materials, up to 100% is available. The city issues Economic Development Revenue Bonds and enters into a lease or lease-purchase agreement. Tax abatements cannot be in effect longer than ten years.


Transportation Development District (TDD) – The district charges additional sales tax or assesses a special property tax, with proceeds going to pay for transportation-related project costs. Full approval is needed by all district property owners.


Community Improvement District (CID) – The district charges additional sales tax or assesses a special property tax, with proceeds going to pay for capital improvements, infrastructure and certain operational costs. Fifty-five percent of property owners must approve the district. If a special assessment is used, 100% of the property owners must give approval.


Tax Increment Financing (TIF) – This financing requires the creation of a redevelopment district following approval of a redevelopment project area plan. The project is financed by pay-as-you-go proceeds or issuance of bonds.


STAR (Sales Tax) Bonds – STAR bonds are special bond projects for major commercial or tourist areas. The threshold is usually $50 million in capital investment and $50 million in gross annual sales. Both an incremental state and local sales tax can be used to fund the project.

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