Kansas Attorney General Opinion 2022-001

February 10, 2022
ATTORNEY GENERAL OPINION NO. 2022- 1
Amanda L. Stanley, City Attorney
City of Topeka, Kansas
Legal Department
215 SE 7th , Room 353
Topeka, KS 66603
Re: 	Cities and Municipalities—Buildings, Structures and Grounds; Development
and Redevelopment of Areas In and Around Cities—Purpose of Act;
Issuance of Special Obligation Bonds and Full Faith and Credit Tax
Increment Bonds; Taxing Subdivision and Real Property Taxes Defined;
Assessment and Distribution of Taxes
Synopsis: 	Real property taxes paid on real property located within the boundaries of
a redevelopment district are to be allocated pursuant to the formula set out
in K.S.A. 2021 Supp. 12-1775(b) beginning with the first payment of taxes
which 	are 	levied 	following 	the 	date 	of 	the 	establishment 	of 	the
redevelopment district. 	The city is not required to adopt a redevelopment
project plan before real property taxes received by the county treasurer are
paid to the special fund of the city. 	Cited herein: 	K.S.A. 2021 Supp. 12-
1770; 12-1770a; 12-1771; 12-1772; 12-1774; 12-1775; K.S.A. 12-1778.
* 	* 	*
Dear Ms. Stanley:
As counsel for the City of Topeka, Kansas, 1 you request our opinion regarding the proper
allocation of property taxes paid for property within a redevelopment district established
pursuant to the Tax Increment Finance Act (TIF).2 	Specifically, you ask whether K.S.A.
1 The request was submitted by your predecessor. The opinion is being issued due to continued interest
in the issue.
2 K.S.A. 12-1770 et seq.

Amanda L. Stanley, City Attorney
Page 2
2021 Supp. 12-1775(b)(2) requires a county, except for Wyandotte County with respect
to its race track development district, to allocate to the city treasurer those real property
taxes produced in excess of the base year assessed valuation for deposit in a special
fund of the city, beginning with the first payment of taxes levied following the date of
establishment of the redevelopment district, regardless of whether the city has yet
adopted a project plan pursuant to K.S.A. 2021 Supp. 12-1772.
TIF is designed “to assist in the development and redevelopment of eligible areas within
and without a city thereby promoting the general welfare of the citizens of this state. . . .”3
Redevelopment under TIF is pursued through a two-stage process: establishment of a
redevelopment district and adoption of a redevelopment project plan. 4
The procedure for establishing a redevelopment district requires the city to adopt a
resolution stating that the city is considering establishment of a redevelopment district
and to provide notice that a public hearing will be held to consider establishment of the
district.5 The notice includes descriptions of the redevelopment district's proposed
boundaries and the district plan. 6 The notice is given in two forms: by mailing copies of
the resolution to the board of county commissioners, local board of education and each
owner 	and 	occupant 	of 	land 	within 	the 	proposed 	redevelopment 	district; 	and 	by
publication of the resolution in the official city newspaper.7 Following the public hearing,
the city may adopt an ordinance establishing the redevelopment district. 8 “No privately
owned property subject to ad valorem taxes shall be acquired and redeveloped . . . if the
board of county commissioners or the board of education levying taxes on such property
determines by resolution . . . that the proposed redevelopment district . . . will have an
adverse effect on such county or school district.”9 If such a resolution is received by the
city, the city is required to adopt an ordinance terminating the redevelopment district.10
If the county or school district does not deliver a resolution of adverse effect, the city may
proceed to the second stage and adopt a redevelopment project plan. A redevelopment
project plan is “the plan adopted by a municipality for the development of a redevelopment
project … in [an established] 11 redevelopment district”12 that may be implemented in
separate stages. 13 	The redevelopment project plan includes “a description and map of
the redevelopment project area to be redeveloped” 14 and “a detailed description of the
3 K.S.A. 2021 Supp. 12-1770.
4 Attorney General Opinion 2011-1.
5 K.S.A. 2021 Supp. 12-1771(a).
6 Id. The redevelopment district plan is “the preliminary plan that identifies all of the proposed project areas
and identifies in a general manner all of the buildings, facilities and improvements in each that are proposed
to be constructed or improved. …” K.S.A. 2021 Supp. 12-1770a(q) (emphasis added).
7 Id. See K.S.A. 2021 Supp. 12-1772(c)(2).
8 K.S.A. 2021 Supp. 12-1771(b).
9 K.S.A. 2021 Supp. 12-1771(d).
10 Id.
11 K.S.A. 2021 Supp. 12-1770a(r)
12 K.S.A. 2021 Supp. 12-1770a(s).
13 K.S.A. 2021 Supp. 12-1772(a).
14 K.S.A. 2021 Supp. 12-1772(a)(3).

Amanda L. Stanley, City Attorney
Page 3
buildings and facilities proposed to be constructed or improved in such area.”15 It is
prepared in consultation with the city's planning commission, must be consistent with the
comprehensive plan for development of the city and include a summary of the feasibility
study. 16 The project plan must be delivered to the board of county commissioners and the
local board of education. 17 The city may then adopt a resolution stating its intent to
consider adoption of the project plan. 18 Notice of the public hearing at which adoption is
to be considered is provided by mailing a copy of the resolution to the board of county
commissioners, the local board of education and each owner and occupant of land within
the proposed redevelopment project area and by publication of the resolution in the official
city newspaper. 19 “Following the public hearing, the governing body may adopt the project
plan by ordinance upon a 2/3 vote. . . .”20
Financing of a redevelopment project may be achieved through issuance of special
obligation bonds and full faith and credit tax increment bonds. 21 	Among the sources of
revenue that may be pledged to pay the bonds is the “tax increments allocated to, and
paid into a special fund of the city under the provisions of K.S.A. 12-1775, and
amendments thereto.”22 	The “tax increment” is the “amount of real property taxes
collected from real property located within the redevelopment district that is in excess of
the amount of real property taxes which is collected from the base year assessed
valuation.” 23 	The idea is that real property values within a redevelopment district will
increase, resulting in increased real property tax revenues, and that the increased tax
revenues will be deposited into a special fund of the city and used to pay the bonds.24
The issue for this opinion regards the timing of allocation of the tax increment received
for the real property located in a redevelopment district. 	The allocation of real property
taxes received for real property located in a redevelopment district is addressed in K.S.A.
2021 Supp. 12-1775.
(b) Except for redevelopment projects [including an auto race track facility],
beginning with the first payment of taxes which are levied following the date
of the establishment of the redevelopment district real property taxes
received by the county treasurer resulting from taxes which are levied
subject to the provisions of this act by and for the benefit of a taxing
subdivision, as defined in K.S.A. 12-1770a, and amendments thereto, on
15 K.S.A. 2021 Supp. 12-1772(a)(5).
16 K.S.A. 2021 Supp. 12-1772(a) and (b). The feasibility study shows whether the project’s benefits and
revenue sources are sufficient to pay the redevelopment costs. K.S.A. 2021 Supp. 12-1770a(k).
17 K.S.A. 2021 Supp. 12-1772(b).
18 K.S.A. 2021 Supp. 12-1772(b).
19 K.S.A. 2021 Supp. 12-1772(c)(2).
20 K.S.A. 2021 Supp. 12-1772(e).
21 K.S.A. 2021 Supp. 12-1770; 12-1774(a)(1) and (b)(1); K.S.A. 12-1778.
22 K.S.A. 2021 Supp. 12-1774(a)(1)(A) and (b)(1); K.S.A. 12-1778.
23 K.S.A. 2021 Supp. 12-1770a(u). “‘Base year assessed valuation’ [is] the assessed valuation of all real
property within the boundaries of a redevelopment district on the date the redevelopment district was
established.” K.S.A. 2021 Supp. 12-1770a(b).
24 See State ex rel. Schneider v. City of Topeka, 227 Kan. 115, 117 (1980).

Amanda L. Stanley, City Attorney
Page 4
property located within such redevelopment district constituting a separate
taxing unit under the provisions of this section, shall be divided as follows:
(1) From the taxes levied each year subject to the provisions of this act by
or for each of the taxing subdivisions upon property located within a
redevelopment 	district 	constituting 	a 	separate 	taxing 	unit 	under 	the
provisions of this act, the county treasurer first shall allocate and pay to each
such taxing subdivision all of the real property taxes collected which are
produced from the base year assessed valuation.
(2) Any real property taxes produced from that portion of the current
assessed 	valuation 	of 	real 	property 	within 	the 	redevelopment 	district
constituting a separate taxing unit under the provisions of this section in
excess of the base year assessed valuation shall be allocated and paid by
the county treasurer to the treasurer of the city and deposited in a special
fund of the city to pay the redevelopment project costs including the
payment of principal of and interest on any special obligation bonds or full
faith and credit tax increment bonds issued by such city to finance, in whole
or in part, such redevelopment project.25
The rules of statutory interpretation apply in determining when the county treasurer is
required to allocate the tax increment.
The most fundamental rule of statutory interpretation is that the intent of the
Legislature governs if that intent can be ascertained. 	In ascertaining this
intent, we begin with the plain language of the statute, giving common words
their ordinary meaning. 	When a statute is plain and unambiguous, an
appellate court should not speculate about the legislative intent behind that
clear language, and it should refrain from reading something into the statute
that is not readily found in its words. We will only review legislative history
or 	use 	canons 	of 	construction 	if 	the 	statute's 	language 	or 	text 	is
ambiguous. 26
“When interpreting the provisions of a statute, [the court] generally presume[s] that the
Legislature acts with full knowledge of the statutory subject matter, including prior and
existing law and judicial decisions interpreting the same.” 27 It, therefore, is presumed the
Legislature is aware that establishment of the redevelopment district is not the final step
of the process. 	The Legislature has ensured that taxing subdivisions and owners and
occupants of land within a proposed redevelopment district receive notice and are
afforded an opportunity to provide input prior to the city taking final action. 	Further, the
county or school district may unilaterally stop the establishment of the redevelopment
25 K.S.A. 2021 Supp. 12-1775(b) (emphasis added).
26 Matter of M.M., 3122 Kan. 872, 874 (2021) (internal citations omitted).
27 Id., at 875.

Amanda L. Stanley, City Attorney
Page 5
district by providing a resolution of adverse effect within 30 days following the conclusion
of the public hearing.
The plain language provides that real property taxes paid on real property located within
the boundaries of a redevelopment district are to be allocated pursuant to the formula set
out in K.S.A. 2021 Supp. 12-1775(b) “beginning with the first payment of taxes which are
levied following the date of the establishment of the redevelopment district.” 	The city is
not required to adopt a redevelopment project plan before real property taxes received by
the county treasurer are paid to the special fund of the city.
Sincerely,
Derek Schmidt
Kansas Attorney General
Richard D. Smith
Assistant Attorney General
DS:SS:RDS:sb