Brief (1)
HB 2221, as amended, would make several changes in local sales tax statutes. The bill would grant Labette County local sales tax authority for financing economic development initiatives or public infrastructure projects and provide that such taxes not be shared with cities located therein. Any such taxes would be required to expire not more than ten years after first being imposed. Labette County also is granted additional rate authority for such purposes relative to current law of 0.5 percent.
The bill would provide that all local sales taxes imposed by a class D city, the revenues from which are pledged for economic development initiatives, strategic planning initiatives, or for public infrastructure projects, would expire not more than ten years after first being imposed.
The bill would authorize both cities and counties to levy sales taxes of up to 1.0 percent earmarked for health care services, eliminating provisions of current law relating to interdependency of city and county rates for such taxes.
The bill would provide a grandfather clause allowing cities and counties which have duly imposed a sales tax prior to July 1, 2001 to retain that sales tax.
The bill would also give authority to the Secretary of Revenue to issue subpoenas for access to, or the production of, various information in order to ascertain the correctness of sales tax returns.
Background
Cowley, Russell, and Woodson counties currently have similar authority for economic development initiatives and public infrastructure projects.
The original bill dealt only with Riley County.
Proponents said that Riley County hoped to have a sales tax election prior to 2004 with the revenues proposed to be earmarked for road and bridge improvements.
The House Taxation Committee amendment was suggested by proponents, who indicated that a more flexible sunset date would allow them greater flexibility in deciding the proposed rate for the tax.
The House Committee of the Whole added the provisions relative to Labette County.
The Senate Assessment and Taxation Committee amended the bill to add the combined rate limitation relative to city and county taxes earmarked for health care services. This amendment would bolster and strengthen the argument that uniformity was restored to the local sales tax laws relative to cities by 1998 amendments. The Senate Assessment and Taxation Committee also amended the bill to acknowledge that SB 216 has been signed into law by the Governor.
The Senate Committee further amended HB 2221, in part to further bolster and strengthen the argument that uniformity was restored to the local sales tax laws relative to cities by 1998 amendments. The Senate Committee amended the bill to remove Riley County from the bill; authorize both cities and counties to levy sales taxes of up to 1.0 percent earmarked for health care services; extend the expiration date for local sales taxes imposed by class D cities for economic development, strategic planning initiatives, or for public infrastructure projects, to not more than ten years after first being imposed; and make technical changes.
The Senate Committee of the Whole amended the bill to provide the grandfather clause for cities and counties which have duly imposed a sales tax prior to July 1, 2001 and to give authority to the Secretary of Revenue to issue subpoenas for access to, or the production of, various information in order to ascertain the correctness of sales tax returns.
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