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Kansas is missing out on data center projects. Can sales tax breaks change that?

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Kansas is missing out on data center projects. Can sales tax breaks change that?


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  • Kansas lawmakers are considering a bill that would exempt data centers from paying sales tax on construction and equipment.
  • Supporters say the tax break is needed to attract data centers and the high-paying jobs they bring.
  • Opponents argue the tax breaks are too costly and that Kansas should focus on broader tax relief.
  • Some lawmakers also expressed concern about the impact data centers would have on the state’s electric grid.

Kansas politicians are renewing an effort to lure data centers to the state by giving such projects tax incentives.

The Senate voted 34-6 on Wednesday to pass Senate Bill 51, which sends it to the House. The bill would create a sales tax exemption for the construction or remodeling of a qualified data center in Kansas with a minimum investment of $250 million. The tax break would apply to the purchase of equipment and other costs.

State economic development officials say Kansas is missing out on data center projects and could continue to miss out on them without a tax incentive.

“The choice is simple,” said Sen. Joe Claeys, R-Wichita. “We can pass SB 51 and compete for billions in new investment, or we can continue to watch these opportunities go to other states.

“No state has ever attracted a significant data center investment without this basic exemption. This bill brings new investment, creates high paying jobs, improves our power infrastructure and generates long-term tax revenue. It’s time for Kansas to get in the game.”

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Kansas is missing out on data centers

Rachel Willis, of the Kansas Department of Commerce, told the Senate Commerce Committee last month that Kansas missed out on five projects in the past calendar year. That included a $10 billion data center campus that went to Louisiana and four separate projects, each worth $800 million, that chose Alabama, Minnesota, South Carolina and Wyoming.

Meanwhile, the agency’s business recruitment team has 14 data center projects in the pipeline. Willis said tax incentives would help entice those projects to choose Kansas.

Greater Topeka Chamber president Juliet Abdel indicated that the capital city has been considered for some of the projects.

“Go Topeka, our Topeka and Shawnee County economic development entity, has had several Data Center projects express interest,” Abdel said in written testimony. “The economic impact both directly and indirectly is substantial. These projects contribute to the economy through infrastructure investments, employment, and function as a catalyst to growth as industries become more digitally driven.”

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How would the tax break work?

“This exemption would be for sales tax for anything from land or site improvements, buildings, data center equipment, lease purchases, etc.,” said Sen. Stephen Owens, R-Hesston. “It’s important to note that these sales tax exemptions do have a timeline.”

The timeline depends on the size of the investment. The exemption lasts 15 years for an investment of at least $250 million investment, 30 years for an investment of $500,000 or more and 60 years for an investment that tops $1 billion.

“The reason for that extension is to ensure that these data centers can continue to be refreshed over time,” Owens said, such as investing in updated servers as technology changes.

Owens said this would put Kansas in line with 31 states that have similar sales tax breaks for data centers.

Owens said the tax breaks are offset by the taxes a data center would pay on its electric bill.

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“The sales tax that we would have forgone is actually outweigh by the sales tax we would collect on the utilities, and specifically the electricity that is being purchased,” he said. “So ultimately, this is a net benefit.”

Data center projects criticized

Sen. Mike Thompson, R-Shawnee, pointed to a 2016 study by Good Jobs First, a corporate subsidy watchdog. It reported that 11 data center megadeals received a total of more than $2 billion in incentives, translating to a cost of $1.95 million per job created.

A follow-up report in 2023 raised similar concerns, concluding: “The data we do have is clear: Such subsidies are indefensible in any state, given spiraling costs and paltry job creation.”

“If we’re serious about cutting the state budget and providing meaningful tax relief to all Kansans, we must stop picking winners and losers with targeted tax relief for a few,” Thompson said. “Instead, we should level the playing field for all our residents and businesses so they can share in the economic benefits.”

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Electric grid concerns

Sen. Kenny Titus, R-Manhattan, opposed the bill “because of concerns about our electric power grid’s ability to provide adequate power supply in the future for both the potential influx of data centers and other economic development opportunities that provide many more employment opportunities.”

Claeys, citing a Kansas Corporation Commission report, said that “large load customers like data centers actually help make electricity more affordable for everyone. Because these facilities provide substantial, predictable demand from large customers, they can plan and invest more efficiently in our power infrastructure.”

Electric utility monopoly Evergy made the same argument in written testimony.

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 Orders Trans Drivers to Surrender Licenses With One Day’s Notice

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Kansas Orders Trans Drivers to Surrender Licenses With One Day’s Notice


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The Kansas Division of Vehicles (DOV) has instructed transgender residents to surrender their updated driver’s licenses, as one of the nation’s most extreme anti-trans laws takes effect this week.

Trans Kansans received letters from the DOV on Wednesday informing them that licenses and other state ID papers that do not match a person’s assigned sex at birth are considered invalid and must be surrendered to the state effective immediately, ostensibly giving them less than 24 hours to make accommodations, according to multiple copies of the letter reviewed by the Kansas City Star.

“Please note that the Legislature did not include a grace period for updating credentials,” the letter read in part. “That means that once the law is officially enacted, your current credentials will be invalid immediately, and you may be subject to additional penalties if you are operating a vehicle without a valid credential.” Affected residents were “directed to surrender your current credential to the Kansas Division of Vehicles” and receive a new ID — at their own expense, as SB 244 did not provide state funding to cover the reversions, the Star noted.

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The move comes as a result of Kansas’ SB 244, which became law on Thursday and instructs state agencies to reverse gender marker changes on official documents. Gov. Laura Kelly vetoed the legislation, but the Republican supermajority overrode her veto last week.

Kansas officially recognizes only “male” and “female” as recorded at birth as valid sexes, per a state law passed in 2023. About 1,700 people are expected to have their licenses invalidated as a result of the new law, according to a legislative analysis of SB 244 conducted by the state House. The law will also invalidate amended birth certificates that were issued with a corrected gender marker.

The LGBTQ Foundation of Kansas shared a copy of one letter on Instagram, with identifying information redacted. Representatives for the nonprofit noted that some Kansas counties will hold special elections next week, and trans residents without valid photo ID cards will not be able to cast a vote under existing state law.

At least three other states have passed laws banning gender marker changes on driver’s licenses, but Kansas is now the only U.S. state to require such previous changes be reverted, according to KCTV.

“The persecution is the point,” said Rep. Abi Boatman, Kansas’ only trans state legislator, in a statement to the Star on Wednesday. “It tells me that Kansas Republicans are interested in being on the vanguard of the culture war and in a race to the bottom,” she added in a comment to KCTV.

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Kansas City man charged with murder in fatal shooting of reported missing teenage girl

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Kansas City man charged with murder in fatal shooting of reported missing teenage girl


KANSAS CITY, Mo. (KCTV) – A Kansas City man has now been charged in the death of a teenage girl who was reported missing and found dead a day later from a gunshot.

Jackson County Prosecutor Melesa Johnson announced Wednesday that Eric R. Phillips II has been charged with first-degree murder, armed criminal action and abandoning a corpse, following the girl’s November 2025 death.

Elayjah Murray had been reported missing on Nov. 28, 2025. As investigators looked into her disappearance, the Independence Police Department’s Criminal Investigation Unit learned that she’d possibly been shot.

Eric R. Phillips II has been charged with first-degree murder, armed criminal action and abandoning a corpse, following the girl’s November 2025 death.(Independence Police Department/Facebook)

Multiple witnesses and surveillance footage helped detectives identify Phillips as the shooter. Court documents say he shot Murray multiple times while she was in the back of his car during the early morning hours of Nov. 28.

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A day later, police with the Kansas City Missouri Police Department found Murray in Kansas City. Phillips’ cell phone pinged in the area where Murray’s body was located.

Phillips’ bond has been set at $350,000 cash only.

Johnson said Phillips was charged on Dec. 3, 2025, under seal. The case was unsealed Wednesday in an effort to help locate Phillips.



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Kansas marijuana debate: tax dollars vs. crime concerns

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Kansas marijuana debate: tax dollars vs. crime concerns


TOPEKA, Kan. (WIBW) – Kansas House Democrats on Tuesday discussed separate bills to legalize recreational and medical marijuana use, citing a recent Kansas Speaks survey showing 70% of Kansans support medical legalization and 60% support recreational use.

Supporters say the legislation would generate revenue for affordable housing, childcare and property tax relief. Opponents say legalization would worsen the state’s mental health crisis and increase crime.

What supporters say

Rep. Ford Carr, D-Wichita, said the bills would direct significant revenue back to residents.

“In this legislation, we’re gonna take those funds — which could be, you know, we’re talking about $1 billion and we’re gonna give that back to the people,” Carr said.

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Rep. Heather Meyer, D-Overland Park, said Kansans are already crossing state lines to access cannabis.

“I live right on the Kansas-Missouri border. The closest dispensary is 12 minutes away[…]We’ve got cannabis on the other side of the state line. You’ve got minivans with JoCo tags on them, Wyandotte tags on them,” Meyer said.

Rep. John Alcala, D-Topeka, said constituents have long pressed him on the issue.

“I used to receive tons of emails from parents whose children needed medical cannabis for seizures. I still receive an overwhelming amount of emails from our veterans suffering from PTSD,” Alcala said.

What opponents say

Katie Patterson, a representative for Stand Up for Kansas who spent more than 18 years with the Kansas Bureau of Investigation, said she opposes the bills and that crime has increased in states where marijuana has been legalized in some form.

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“I’ve seen firsthand how substance use, abuse and addiction impact lives, families, communities and create strains on criminal justice systems,” Patterson said.

Patterson said the FDA should serve as the standard for what qualifies as medicine.

“Medicines should be based on clinical data and robust amounts of research demonstrating medical efficacy for treatment of certain conditions,” Patterson said.

She also said increased access leads to increased use and warned of consequences for the state’s mental health system.

“We in this state have a mental health crisis. This is a policy conversation that would further exacerbate that crisis that we currently have on our hands with treatment in Kansas,” Patterson said.

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What happens next

The bills were referred to the House Federal and State Affairs Committee. No hearing has been scheduled. Supporters said they do not expect the bills to advance this session but said they intend to continue raising the issue.



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