Hi Wichita. Feel like paying property taxes so Wichita’s millionaire Steven brothers don’t have to?
If you’re like me, that’s probably a hard no.
But it’s what the Kansas House of Representatives passed in the dead of night last week before going on spring break. And our state senators are more than likely to pass it and send it to the governor as soon as they get back.
Here’s the back story:
Genesis Health Clubs, owned by Rodney and Brandon Steven, has been pushing for years to get its vast empire of for-profit fitness clubs exempted from property taxes, carping about having to compete with YMCAs.
The Legislature has rejected that in the past, but it’s back in a new form this year in Senate Bill 8.
SB 8 is basically a grab-bag of giveaways to various special interests, which also includes the ill-conceived idea of giving tax credits to anti-abortion folks who fund anti-abortion organizations.
While that would seemingly be the worst idea you could include in any bill, it’s absolutely eclipsed by the outrageous arrogance in the part of the bill that would provide the Stevens the tax exemption they have sought for so long.
The Stevens lost in the past because they picked the wrong fight. YMCAs are popular, they take everybody as members regardless of ability to pay, and they do society-improving works far beyond providing weight rooms and exercise bikes.
So this year, the concept is back and the new line of attack is supposed competition from local government.
And to expand the base of potential support, this year’s bill also includes property tax exemption for restaurants and child-care centers that supposedly have to “compete” with government-owned or -operated facilities.
Here’s just a small example to chew on: The city of Wichita built a big parking garage in Old Town to facilitate the development of the Warren Theatre and cinema plaza. As part of paying for the garage, the city built some retail space into it, which it continues to own and rents to businesses, five of which are restaurants.
SB 8 would exempt from property taxes all restaurants within a five-mile radius of government-owned restaurants. Five miles includes the entire central city. It’s roughly the area from the 135-235 freeway interchanges in north and south Wichita, from the Towne East to Towne West malls.
The Stevens have stayed out of the fray this time around. They didn’t have to get involved because Sen. J.R. Claeys of Salina and Senate President Ty Masterson of Andover have been willing to shill for them at the Capitol.
Witness this exchange between Claeys and Masterson during the Senate hearing:
