Tuesday, April 12, 2011

Kansas governor and legislature offer tax breaks for moving to one of 50 rural counties

How do rural areas halt or slow population declines, being freshly reported in new census data? Kansas Gov. Sam Brownback has an idea: He recently signed a bill that aims to attract new residents to some of the state's most rural counties. "His administration created a plan that targets 50 rural counties — pegged as rural opportunity zones, or ROZ — with a two-pronged approach for a five-year stretch," Rick Plumlee reports for The Wichita Eagle. (Eagle photo by Jaime Green)

The first part of the incentive plan "waives state income taxes for tax years 2012-16 for those who relocate to one of the ROZ counties after having lived outside of the state for at least five years or having had a Kansas-source income of less than $10,000 for at least five years prior to moving," Plumlee writes. The second part, designed to bring younger people to designated rural areas, pays $3,000 a year — max $15,000 — towards student loans to college graduates moving to the targeted communities. The state and county would split loan payment costs, Plumlee reports.

"Graduates are sometimes reluctant to move to a rural area because jobs there don't usually pay as high as in urban areas," Brownback said in a ceremony at Wichita State University. "But combine this with student loan paydown and they may be able to make it work." (Read more)

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