Brief ⁽¹⁾

HB 2008 would provide a property tax exemption for real and personal property used exclusively in the production of ethanol by a qualified Kansas ethanol producer. This exemption could not exceed the proportional value of the property's assessed value, equated to the proportional value of ethanol produced and sold to an alcohol blender. The exemption would be limited to ten years after the property is first used in the production of ethanol and to only that property which is acquired or for which construction is completed after December 31, 2000.

Background

HB 2008 was introduced by the Special Committee on Utilities. The House Taxation Committee held a hearing on HB 2008 at which time a representative of the Kansas Grain Sorghum Producers Association and the Kansas Corn Growers Association testified in favor of the bill.

Property tax provisions similar to those in HB 2008 were amended into HB 2010 by the House Committee of the Whole.

The Division of the Budget reports that the fiscal impact of passage of HB 2008 cannot be estimated due to a lack of adequate information. The Department of Revenue notes that any estimate of the fiscal impact of HB 2008 would be affected by the amount of completed construction, any acquisitions made after the bill's effective date, the percentage of the assessed value, and the amount of ethanol sold to an alcohol blender, but quantifying these values would be extremely speculative.

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/fulltext.cgi