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Minutes for HB2108 - Committee on Taxation
Short Title
Providing a back-to-school sales tax holiday for sales of certain school supplies, computers and clothing.
Minutes Content for Thu, Feb 2, 2023
Chairperson Smith opened the hearing for HB2108.
Mr. Siebers provided an overview on HB2108 that would provide a sales tax exemption for sales of certain school supplies, computers and clothing during an annual sales tax holiday. (Attachment 9) Mr. Siebers stood for questions from Committee members.
Kathleen Smith provided an overview on the fiscal note for HB2108 stating the bill will decrease state revenues by $6.5 million in FY 2024. Of that total, the State General Fund is estimated to decrease by $5.4 million and the State Highway Fund $1.1 million. For FY 2025 a decrease of $6.7 million for the total state funds and for FY 2026 the decrease is $6.8 million. To formulate the estimate, consumer expenditure data was reviewed and the average Midwestern household annually spends $1,746 on clothing and $1,159 on education. It was estimated that 75.0 percent of the clothing would qualify and 25.0 percent of the education purchases would qualify for the exemption status during the sales tax holiday. For Kansas sales tax holiday, it is assumed that sales during the four-day period would at least triple normal purchases. Ms. Smith stood for questions from Committee members.
In response to a question, Ms. Smith will provide information to Committee members of what the fiscal impact would be if HB2108 was created to cover two tax holidays or two weekends in a row.
Proponents:
Jami Reever, Kansas Appleseed Center for Law and Justice, testified as a proponent for HB2108 stating from her own experience sending children back to school is expensive. The National Retail Foundation has estimated that in 2022 families were spending approximately $864 to send their kids back to school which included shoes, electronics, and clothing. Out of the $864, $140 was on school supplies. (Attachment 10)
Jim Karleskint, United School Administrators of Kansas, testified as a proponent for HB2108 stating knowing what it costs to send children back to school the bill would be a big savings for families. School administrators and school boards understand the burden placed on families and many school districts do support and help families. HB2108 offers real relief for Kansas families experiencing economic challenges as their children return to school in the fall. (Attachment 11)
Logan Stenseng, Zero to Thrive, Thrive Allen County, testified as a proponent for HB2108 to support families and child care programs so that every Kansas child can have a quality educational experience regardless of their economic status. Any savings that child care programs receive helps sustain the programs and the invaluable work they provide for families and the economy. (Attachment 12)
The conferees stood for questions from Committee members.
Written testimony was submitted by the following as proponents for HB2108:
Annell Harmon, Harmon & Harmon Family Childcare, (Attachment 13)
Timothy R. Graham, Kansas National Education Association, (Attachment 14)
Spencer Duncan, League of Kansas Municipalities, (Attachment 15)
Julie Brewer, United Community Services of Johnson County, (Attachment 16)
Jennifer Hurley, Speech Pathologist, (Attachment 17)
Lindsay Weiss, Social Worker, (Attachment 18)
Neutral:
Written testimony was submitted by the following as neutral for HB2108:
Jay Hall, Kansas Association of Counties, (Attachment 19)
Chairperson Smith closed the hearing for HB2108.
