Commercial / Retail Incentives

The City of South Hutchinson has made business retention and recruitment a priority. In keeping with that mission, the City has adopted many policies to encourage business development. The current focus is on retail and commercial businesses, but the City has programs available for industrial expansion or relocation as well.

Any questions regarding business incentives should be directed to City Administrator Matt Stiles by email or phone (620)663-7104.

Retail Sales Tax Rebate
South Hutchinson offers a retail sales tax rebate program for businesses locating in South Hutchinson. The .25% local option sales tax levied for economic development and road improvement will be rebated back to business annually. Rebates are not capped and performance based. Rebates can be for a period of up to five (5) years based on the businesses annual payroll. Rebates are issues by the City after the completion of one full calendar year of business. To be eligible a business must meet the following criteria:
  • Business must be new to South Hutchinson and located in the city limits at the time of application
  • Application for incentive must be made before the business begins operation
  • An annual report must be filed with the City Clerk and must include satisfactory verification of the amount of sales tax generated in the last calendar year
  • Businesses that cease operations for thirty (30) days or more forfeit any earned rebate and all future eligibility
More information can be found in the City's written policy.

Commercial Utility Credit
South Hutchinson offers a utility credit program for businesses locating or expanding in South Hutchinson.Recipients receive the minimum charge for water and sewer service credited to their monthly bill. Businesses are responsible for payment of usage charges beyond the credit amount. Amount of credits depends on businesses connection size. Credits can be for a period of up to five (5) years based on the businesses annual payroll. To be eligible a business must meet the following criteria:
  • Business must be new to South Hutchinson and located in the city limits at the time of application
  • Expanding existing businesses are also eligible provided they increase their annual payroll by $15,000; eligibility will be based on added payroll and not existing
  • An annual report must be filed with the City Clerk
  • Businesses must pay their utility bills on time, late payment for three (3) consecutive months result in forfeiture of any remaining credits
  • Businesses that cease operations for thirty (30) days or more forfeit any remaining credit and all future eligibility
More information can be found in the City's written policy.

Incentive Payroll Table.jpg
Retail sales tax rebates and commercial utility credits length are determined by annual payroll amounts. Eligibility is determined at the time of issuance and re-evaluated annually.