Brief (1)
HB 2589, as amended, would provide a variety of new income tax credits.
Telecommunications Property Tax Credit. The first of these authorizes refundable income tax credits beginning in tax year 2001 designed to offset the property tax assessment rate differential (33 to 25 percent) between certain telecommunications companies and property which is assessed as commercial and industrial. These income tax credits would only be applicable for property taxes paid on property acquired on and after January 1, 2001.
Teacher's Classroom Expenditures Credit. The bill would also provide an income tax credit to K-12 certified educators for the purchase cost of equipment, materials, or other teaching aids for use in the educator's classroom. This credit would be limited to $100 per year and would be in effect in tax year 2000.
Low-Income Residential Property Tax Credit. The bill would also authorize a refundable income tax credit to qualified low-income Kansans for a percentage of the amount of property tax actually and timely paid on the taxpayer's residence. This credit could not be taken in conjunction with the current Homestead Property Tax Refund.
Food Locker Plant Credit. The bill would also provide an income tax credit for operators of a food locker plant, equal to the cost of facility improvements to the plant required by federal law. This credit could not exceed $10,000 in any tax year and would be nonrefundable, but could be carried over to the extent that the amount of the credit exceeds the taxpayer's income tax liability in a given year. The food locker plant tax credits would be available beginning in tax year 2000.
Deer Processing Credit. The bill would also provide an income tax credit for expenses incurred by the operator of a food locker plant equal to 75 percent of the customary fee for custom processing of deer when the meat is subsequently donated to charity.
Small Business Guarantee Fee Credit. Finally, the bill would provide an income tax credit equal to the amount paid to the United States Small Business Administration (SBA) as a guaranty fee pursuant to obtaining an SBA guaranteed loan.
Background
The Committee amendments were recommended by a subcommittee chaired by Representative Edmonds.
The House Committee of the Whole amended the bill to include the credits for classroom expenditures of certified teachers, a percentage of the residential property tax paid by low income Kansans, certain food locker facility improvements, the cost of deer processing for donation to charity, and SBA guarantee fees. The House Committee of the Whole also amended the telecommunications credit portion of the bill to clarify that the credit would apply only to property tax paid on property initially acquired after January 1, 2001.
The Department of Revenue indicates that the fiscal note of the telecommunications credit portion of the bill would be $0.26 million in FY 2002; $0.55 million in FY 2003; $0.57 million in FY 2004; and $0.60 million in FY 2005. Fiscal notes on the House Committee of the Whole amendments were not available upon publication of this Supplemental Note.
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