Chairperson Smith opened the discussion on HB2406.
Mr. Siebers provided an overview for HB2406 that removes the requirement for the property tax exemption that commercial and industrial machinery and equipment had to be acquired by qualified purchase or lease or transported in the state after June 30, 2006, in order to qualify for the exemption.
Mr. Siebers stood for questions from Committee members.
Mr. Penner, Legislative Research, prepared a county by county list of how HB2406 would impact various counties across the state.(Attachment 6) He explained the first column is labeling the county; 2nd column is the total taxable amount; 3rd column is the amount of currently taxable commercial and industrial machinery and equipment. The 4th column, Mr. Penner noted during the hearing for HB2406 there was discussion of a possible amendment to extend to certain public utility machinery and equipment that was exempted in 2006 under the same legislation that created this exemption with the same date. This is the amount estimated per county value. The final column labeled ME Percent of Total is the sum of the commercial, industrial and public utility machinery and equipment as a percent of the total taxable value. Mr. Penner noted the second page at the very bottom, in statewide aggregate terms, the amount of total value that would be exempted within the state if the amendment were adopted is about .81 percent of the presently taxable value with the state. Counties highlighted in red the percent exceeds 2.0 percent, yellow highlight the percent exceeds 1.0 percent and are counties that will be impacted by this exemption.
Mr. Penner stood for questions from Committee members.
Chairperson Smith moved, seconded by Representative Sawyer, to amend HB2406 (Attachment 7)
Committee discussion ensued.
Chairperson Smith closed on his amendment for HB2406. Motion carried.
Committee discussion ensued.
Lynn Kent, Division of Property Valuation, Kansas Department of Revenue, stated the intention of the bill was to completely eliminate and equalize all commercial, industrial machinery and equipment. The language in the first statute, K.S.A. 79-223 d1 and K.S.A. 2025, Supp. 79-224 is to promote, stimulate, foster and encourage new investments in telecommunications machinery and equipment in the state of Kansas. amended and repealing the existing sections.
Chairperson Smith made a conceptual motion, seconded by Representative Helgerson. to amend K.S.A. 79-223 d1 and K.S.A. 2025, Supp. 79-224 in HB2406. Motion carried.
Chairperson Smith renewed his motion to recommend HB2406 favorable for passage as amended.
Representative Corbert moved, seconded by Representative Long, to recommend HB2406 favorable for passage as amended. Motion carried.
Division was called and the motion carried with 16 Ayes and 2 Nays. Representative Helgerson requested his vote be recorded as Nay.
Final Action: HB2470 - An Act concerning economic development; relating to the Kansas Neighborhood revitalization act; providing that certain municipalities may designate the entire municipality within a neighborhood revitalization area.
Mr. Siebers provided an overview for HB2470 that provides municipalities with a population of less than 10,000 people shall be allowed to designate the entire municipality as being within a neighborhood revitalization act.
Mr. Siebers stood for questions from Committee
Representative Francis moved, seconded by Representative Long that the committee recommend HB2470 favorable for passage. Motion carried
Representative Helgerson announced to Committee members the sub committee for tax exemptions will meet the week of February 8, 2026 on a Tuesday or Wednesday at 8:00 a.m. An email will be sent to notify all Committee members. Topic to be discussed is proposed legislation for tax exemptions.
Chairperson Smith adjourned the meeting.