Wichita council to weigh $11.25M tax break for Wesley Medical Center upgrades
The Wichita City Council is set to consider $11.25 million in new sales tax exemptions tied to $150 million in upgrades at Wesley Medical Center, owned by HCA Healthcare. The incentives, on the council's Tuesday agenda, would provide a 100% sales tax exemption on $150 million in industrial revenue bonds issued by the city, according to the Wichita Eagle.
The city's share of the exemption is about $843,750, with the remainder representing sales tax that would have gone to Sedgwick County and the state of Kansas. The funding would support expansion of the medical tower known as Building 7, NICU renovations, a new parking garage at the Hillside campus, and relocation and expansion of the emergency department at the Woodlawn campus, per the city's agenda report.
Wesley is not seeking additional property tax breaks in the new agreement, though it has received property tax exemptions under prior IRB agreements. The new incentives would add to $23.2 million in sales tax abatements approved for Wesley since 2018, plus earlier IRBs totaling $385 million since 2013. A Wesley spokesman said the prior incentive cap of $350 million expires at end of 2026, and the new request follows a city request for a lower cap.
The proposal comes as Wichita officials face scrutiny over IRBs and their impact on property taxes. The council plans to begin discussions on changing economic development incentive guidelines in September. The Eagle reported the Wichita area gave more than $209 million in property tax breaks from 2010 to 2025, excluding sales tax breaks that state auditors say are nearly impossible to track.