Chairperson Smith opened the hearing for HB2619.

Adam Siebers, Office of Revisor of Statutes, provided an overview for HB2619 that provides for sales tax exemption for all sales of manufactured homes, mobile homes or modular homes purchased by a not-for-profit organization that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986 and the organization is engaged in providing affordable housing to individuals or families earning less than or equal to 80.0 percent of the area median income, transitional housing or emergency shelter housing. (Attachment 1)

Mr. Siebers stood for questions from Committee members.

Chairperson Smith noted the fiscal note for HB2619 has the potential to decrease state and local sales tax revenues by unknown amounts. in FY2027.  There was follow-up data regarding Wichita affordable housing that reported the average annual sales tax paid on a housing project is approximately $4,000 but no information on what the statewide number would be.   

Proponents:

Steve Feilmeier, Wichita Affordable Housing LLC, testified as a proponent for HB2619 noting the estimated $4,000 is per house regarding the fiscal note.  Wichita faces a demand for an estimated 15,000 to 25,000 new affordable housing and modular homes offers stable housing.  HB2619 lowers construction costs, expands affordable housing supply, ensures equitable treatment of nonprofit housing providers.  (Attachment 2)

Mr. Feilmeier stood for questions from Committee members.

Janel Bowers, Friends of Johnson County Developmental Supports, testified as a proponent for HB2619 that provides a sales tax exemption for material and services used by a contractor when constructing or remodeling affordable housing for certain organizations. HB2619 provides non-profit organizations to provide housing for people who earn less than 80.0 percent of Area Median Income (AMI). (Attachment 3)

Ms. Bowers stood for questions from Committee members.

Proponent written testimony for HB2619 was submitted by the following:

Shawna Williams, Habitat for Humanity, (Attachment 4)

Darren Beckham, Kansas Realtors, (Attachment 5)

Martha Smith, Kansas Manufactured Housing, (Attachment 6)

Kelsey Herr, Kansas Housing Association, (Attachment 7)

Neutral written testimony for HB2619 was submitted by Aaron Mays, Kansas Association of Counties, (Attachment 8)

Chairperson Smith closed the hearing for HB2619.