Sales Tax and Revenue (STAR) Bonds are a financing tool that allows Kansas municipalities to issue bonds to finance the development of major commercial, entertainment and tourism projects. The bonds are paid off through the sales tax revenue generated by the development.
The intent is to increase regional and national visitation to Kansas.
- Kansas municipalities, both rural and urban
- STAR Bonds are used to assist the development of major entertainment or tourism destinations in Kansas. State and local sales tax revenue generated by the attraction and associated retail development are used to pay back the bonds.
- In metropolitan areas, STAR Bonds can be used only for projects with an anticipated capital investment of $50 million and with at least $50 million in projected gross annual sales.
- In rural areas, STAR Bond projects have no specific financial threshold, but must be of major regional or statewide significance.
- The creation of a STAR Bond district requires approval by the Kansas Secretary of Commerce.
Applications for STAR Bonds are accepted year round.