Brief⁽¹⁾

S.B. 6 would require liquor licensees to be current in the payment of state taxes in order to maintain eligibility for a liquor license. The bill authorizes the Secretary of Revenue to deny, revoke, or suspend the license of a licensee who has an undisputed tax liability. Examples of delinquent taxes which could result in an administrative action by the Department of Revenue would include income tax, sales tax, and the transient guest tax. Unpaid taxes under formal appeal or for which a repayment schedule had been established would not preclude licensure. The bill would apply to all licensees under the Liquor Control Act and the Club and Drinking Establishment Act. The bill states that the provision could not be construed to grant the state any more or any less authority to impose taxes, fees, or charges on Native American tribes than exists under state or federal law or tribal-state gaming compacts.

The amended bill also amends existing law to allow the consumption of alcoholic liquor at the Kansas National Guard Regional Training Center at Salina, when authorized by rules and regulations of the Adjutant General and upon approval of the Kansas Military Board.

Background

Under existing law, all categories of liquor licensees are required to be current in the payment of any tax imposed by the liquor laws. However, in most instances, failure to pay other taxes does not result in an administrative action against a licensee.

S.B. 6 was recommended by the Special Committee on Federal and State Affairs as a result of an interim study on liquor tax laws. See Committee Reports to the 1999 Kansas Legislature, Part I, Special Committees, page 2-15. The report also can be accessed on the Internet at:

The Senate Committee amended the bill to strike the references to "willfully" failing to file any tax return, and to add the exemption relating to the National Guard Regional Training Center.

The fiscal note prepared by the Division of the Budget states that the passage of S.B. 6 would have no fiscal effect.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.