Kansas

How much in tax breaks has Panasonic used so far? Kansas auditors don’t know.

Published

12 months ago

December 22, 2023

How much in tax breaks has Panasonic used so far? Kansas auditors don’t know.

Kansas auditors don’t know how much in tax breaks has gone to incentives for megaprojects in the state, prompting a call for economic development officials to start tracking such data.

When the nonpartisan Kansas Legislative Division of Post Audit performed their legally mandated evaluation of new economic development incentive programs, they had little to report to the Legislative Post Audit Committee about the Attracting Powerful Economic Expansion program.

That APEX megaproject legislation was designed to attract Panasonic’s new $4 billion electric vehicle battery plant in De Soto. The governor’s office previously estimated the state’s incentive package totaled $829 million.

Auditor Josh Luthi told lawmakers Dec. 12 that so far, Panasonic has only used the sales tax exemption.

But no one at the Kansas Department of Commerce or the Kansas Department of Revenue knows how much that tax break has cost.

“At the time we were doing this work, neither Commerce nor Revenue had a way to track how much sales taxes Panasonic had been exempted from,” Luthi said. “We think some agency needs a way to track this.

“Commerce officials told us they were working on such a system. But we do think it’s important that somebody, Commerce or Revenue, have a way to track that so agencies like Commerce and LPA can tell you all how much in incentives these businesses have gotten. But also in the event that the state should need to claw back benefits from business, it would know how much to claw back. Especially with sales tax, that’s a little trickier to track than other things.”

Payroll reimbursements to begin when Panasonic hires more employees

Bob North, the Commerce Department’s chief counsel, explained to the Legislative Budget Committee on Dec. 14 why the sales tax exemption is the only incentive Panasonic has received so far.

“They haven’t filed any tax returns to claim any investment tax credit,” North said. “They don’t have enough critical mass of employees to seek the payroll reimbursements.”

But construction is well underway, with construction costs totaling $322 million as of June 30, he said.

“It is moving extremely aggressively,” North said. “There’s approximately 600 construction workers on site. Some of you may have had the opportunity to drive past that. All the concrete is poured, a lot of the steel is up and that project is moving quite rapidly. We anticipate that the hiring arc for those 4,000 or so employees is going to pick up significantly late spring and early summer, and then continue on for quite some time.”

He said that the Commerce Department is working with the Revenue Department “to come up with a process that lets us track that more frequently than annually. Candidly, it’s a bit of a challenge because it’s not just Panasonic, it’s its contractors and subcontractors also get a sales tax exemption on the construction components.”

Integra will also receive tax breaks from state of Kansas

The APEX law authorizes taxpayer-funded incentives to two megaprojects with at least $1 billion in private investment. In addition to Panasonic, the state plans to give tax breaks to Integra.

Integra is a Wichita area project with nearly $2 billion in capital investment creating 1,900 jobs. Officials previously put the state incentive total at $304 million.

Integra has not yet received any of those incentives, Luthi said. That’s because construction of the facility has not yet begun.

“That is contingent upon the federal government approving that project for CHIPS Act funding,” North said. “This involves semiconductor supply chain and supports domestic semiconductor production. We are very, very hopeful that we will hear something positive in that regard, again, 45 to 60 days. Federal government moves relatively slowly.”

Jason Alatidd is a statehouse reporter for the Topeka Capital-Journal. He can be reached by email at jalatidd@gannett.com. Follow him on X @Jason_Alatidd.

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Kansas

Kansas school board rejects textbooks because they’re too anti-Trump

Published

3 hours ago

December 20, 2024

Press Room

Kansas school board rejects textbooks because they’re too anti-Trump

A Kansas school board reportedly rejected textbooks because they believed that the teaching materials were too “biased” against Donald Trump.

A proposed contract with a Boston-based education company was also voted down by the newly elected conservative majority on the Derby Board of Education over their public statements on diversity, equity, and inclusion, KCUR-FM reported.

The $400,000 contract with Houghton Mifflin Harcourt was rejected even though it was recommended by Derby High School teachers, who requested a new school curriculum after being left without social studies textbooks for several years.

But board members reportedly said that parts of textbooks and other learning materials offered by the company did not reflect fairly on Trump’s first presidency.

“My biggest concern … involved what I would define as bias of omission,” board member Cathy Boote said, according to the outlet.

Boote then shared examples of the material she deemed did not accurately reflect the president-elect’s time in office, including the controversial “Muslim travel ban.”

Board members expressed concern that the materials were anti-Trump (REUTERS)

“Then there was the ‘Muslim ban,’” Boote said and made air quotes as she spoke.

“With no mention of the fact it wasn’t aimed at all Muslim countries, just those that have no ability to vet. Safety was the top priority, but they leave it sit there, with no explanation, to make you think he was xenophobic.”

Trump’s travel ban, issued in January 2017, restricted entry into the US for certain people from foreign nations. It was nicknamed the “Muslim ban” by Trump as well as his aides and critics because a majority of those affected by the executive actions came from predominantly Muslim countries.

President Joe Biden issued a proclamation revoking the travel ban when he entered office, but in May this year Trump said he would reinstate the ban.

“We will bring back the travel ban — you remember the famous travel ban,” he said.

Boote said that she was also concerned about the way Trump was portrayed in the text books when it came to trade deals with China, the January 6 Capitol riot and his position on Cuba.

Another board member, Michael Blankenship, reportedly agreed with the concerns raised by Boote, but also rejected the proposal to work with the company because of a pro-Black Lives Matter statement they made in 2020.

“We believe Black Lives Matter [and] we believe in social justice,” the company said.

“That’s a pretty bold statement,” Blankenship reportedly said. “Wouldn’t anybody want to know, ‘What do you mean?’ I still don’t have that answer.”

The Independent has contacted Houghton Mifflin Harcourt for comment.

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Kansas

With of help generous Kansas Citians, families receive holiday gifts at Season of Hope toy drive

Published

10 hours ago

December 19, 2024

Press Room

With of help generous Kansas Citians, families receive holiday gifts at Season of Hope toy drive

KANSAS CITY, Mo — KSHB 41 News and the Salvation Army held the 2024 Season of Hope toy drive Thursday.

It’s the fourth year of a partnership to help Kansas City area families during the holiday season.

With it being this close to the holidays, stores were probably packed with last-minute shoppers, but so was the Salvation Army for the drive, with families picking out the perfect gifts for their loved ones.

Mariah Nicholas is a mom of four — two girls and two boys.

Spending Christmas with them means a little more this year. She almost lost her life in a car accident right before Thanksgiving.

“I hydroplaned off the road and slammed into a tree line on my side,” Nicholas said. “So, I took the blunt of it but I’m hanging in there.”

She signed up for the Season of Hope toy drive to fill a void she couldn’t this Christmas. She says this will take off some of the financial burden.

“I lost my job right before Thanksgiving due to my wreck,” Nicholas said. “So, I’m waiting to go back, but without this help, I probably wouldn’t be able to do much.”

KSHB 41 News staff

Mariah Nicholas

She’s one of 300 families that will benefit from the drive.

It was set up department style, allowing each family to get a personal shopping experience to pick out toys that their children would like.

“There are a lot of toys that my kids will actually enjoy,” said Nina Velazquez, a mom of two. “Usually, I’m very very stressed out because I’m at Walmart in line with 100,000 people and my pocket usually doesn’t have enough to cover everything.”

In total, 11,250 toys were donated this year, and each family received gift cards to Aldi’s, helping to fill their table and tree.

“They get not just a single toy,” Salvation Army Pastor Dawn Windham said. “It’s a big toy and a small toy, and stocking stuffers, and books and family games and clothing — it’s just amazing.”

This event giving more than just hope this holiday season.

“To watch them open, you know more than what I could give them on Christmas this year,” Nicholas said. “So, I’m super grateful to the Salvation Army and them helping us.”

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KSHB 41 reporter La’Nita Brooks covers stories providing solutions and offering discussions on topics of crime and violence. Share your story idea with La’Nita.

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Kansas

FBI looking for 2 fugitives possibly in Kansas wanted in jewelry heists

Published

19 hours ago

December 19, 2024

Press Room

FBI looking for 2 fugitives possibly in Kansas wanted in jewelry heists

KANSAS CITY, Mo. — The FBI distributed posters Thursday morning for two fugitives potentially in Kansas wanted in connection to multiple jewelry heists.

Arrest warrants through the U.S. District Court of Kansas have been issued for Vasile Sava and Onita Rostas.

The pair were indicted earlier this year by a federal grand jury in connection to two jewelry store burglaries across parts of Kansas:

May 18, 2022 at Marks Jewelers in Lawrence, Kansas
Aug. 20, 2022 at Calhoun’s Jewelers in Topeka, Kansas

Court documents indicate the pair stole nearly $60,000 worth of jewelry at the two locations.
The court document also allege the pair were part of a much larger Romanian-based conspiracy in which three other suspects are alleged to have stolen more than $37,000 from two additional jewelry stores in 2023 in McPherson, Kansas and Manhattan, Kansas.

The pair have been charged with conspiracy to commit interstate transportation of stolen property.

During these robberies, it’s alleged that groups of two or more entered jewelry stores and distracted employees, while the other individuals would remove and conceal displayed items in a sleight-of-hand theft.

Sava and Rostas are married, and investigators believe they may be using aliasas, and may be in various locations including Californni, Texas, Florida, Maryland and Virginia.

The FBI has issued wanted posters for the pair you can see on the FBI’s Website.

Anyone with info. on their whereabouts is encouraged to contact any law enforcement agency, or contact the FBI a www.tips.fbi.gov or via the National FBI Tip Line at 1-800-CALLFBI.

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If you have any information about a crime, you may contact your local police department directly. But if you want or need to remain anonymous, you should contact the Greater Kansas City Crime Stoppers Tips Hotline by calling 816-474-TIPS (8477), submitting the tip online or through the free mobile app at P3Tips.com. Depending on your tip, Crime Stoppers could offer you a cash reward.

Annual homicide details and data for the Kansas City area are available through the KSHB 41 News Homicide Tracker, which was launched in 2015. Read the KSHB 41 News Mug Shot Policy.

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