Constitutionality questioned in 'border war truce' bill

Associated Industries of Missouri President Ray McCarty is questioning the constitutionality of a bill designed to end the so-called economic development border war between Missouri and Kansas.

According to the Kansas City Business Journal, the leader of the Jefferson City trade organization is concerned a prefiled Senate bill would violate equal protection provisions in each state.

Senate Bill 635, prefiled Dec. 18 by Kansas Citian Republican Rep. Ryan Silvey, proposes that businesses moving between any of four border counties in Kansas (Douglas, Johnson, Miami and Wyandotte) and four border counties in Missouri (Cass, Clay, Jackson and Platte) would be unable to receive certain economic development incentives. As it is written, the measure would have to be reciprocated by the Kansas Legislature before it would go into effect.

McCarty raised his question in a recent blog post: “Can a law be enacted that denies a tax benefit to some out-of-state employers while giving tax breaks to competitors moving from other areas?  Wouldn’t such a law be discriminatory?” he wrote.

Read Senate Bill 635 here.

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