Authorizing the imposition of a privilege tax by a municipality for the privilege of selling alcoholic beverages, food and food ingredients and tobacco within a community improvement district.

SB 490 allows Kansas municipalities to impose a 1% privilege tax on the sale of alcoholic beverages, food, and tobacco within designated community improvement districts. This tax, collected by sellers from consumers and remitted to the municipality, funds specific community projects like infrastructure improvements. The tax rate can be set in 0.10% or 0.25% increments, expires after 22 years or when project bonds are paid, and revenue is distributed to qualifying municipalities. It applies only to businesses operating in these designated districts and does not affect existing sales taxes.