Chairperson opened the hearing for HB2406.

Mr. Siebers provided an overview for HB2406 removes the requirement for the property tax exemption that commercial and industrial machinery and equipment has to be acquired by qualified purchase or lease or transported into the state after June 30, 2006, in order to qualify for the exemption. (Attachment 14)

Mr. Siebers stood for questions from Committee members.

Proponents:

Sean Robertson, Kansas County Appraisers Association, testified as a proponent for HB2406.  Currently commercial/industrial machinery and equipment (CIME) purchased prior to July 1, 2006 is taxable, whereas newly purchased for the same piece of machinery is exempt from taxation which has created an inequity addressed by HB2406. (Attachment 15)  

Mr. Robertson stood for questions from Committee members.

Eric Stafford, Kansas Chamber, testified as a proponent for HB2406 noting in 2006, the Kansas Legislature passed (2006) HB2583 to exempt commercial and industrial machinery and equipment from property tax. (2006) HB2583 applied only to purchases made after June 30, 2006 leaving machinery and equipment subject to property tax.  HB2406 eliminates the discrepancy in taxation for older but still functional equipment and eliminates the administrative burden to determine amount of taxes owed on remaining eligible equipment.  (Attachment 16)

Mr. Stafford stood for questions from Committee members.

Jay Hall, Kansas Association of Counties, testified as a proponent for HB2406 that would extend the commercial and industrial machinery exemption (CIME) to property purchased prior to 2006.  (Attachment 17)

Mr. Hall stood for questions from Committee members.

Neutral written testimony for HB2406 was submitted by Spencer Duncan, Government Affairs Director, League of Kansas Municipalities. (Attachment 18)

There being no opponent testimony submitted, Chairperson Smith closed the hearing for HB2406.

Chairperson Smith adjourned the meeting at 4:35 p.m.