House Status:
Senate Status:
Senate Status:
Minutes for HB2136 - Committee on Taxation
Short Title
Providing an income tax subtraction modification for sales of property subject to eminent domain.
Minutes Content for Thu, Feb 9, 2023
Vice Chairperson Bergkamp opened the hearing for HB2136.
Mr. Siebers provided an overview for HB2136 that would provide a Kansas income tax subtraction modification for Kansas income tax purposes beginning retroactively to tax year 2021. (Attachment 3)
Kathleen Smith provided an overview on the fiscal note for HB2136 stating the estimate would decrease the State General Fund revenues by unknown amounts beginning in FY2024. KDOR estimates the reductions in revenues would be negligible but do not have enough information to provide a precise estimate. Ms. Smith stood for questions from Committee members. Ms. Smith stood for questions from Committee members.
Proponents:
Mr. Larry Rohrer, Wathena, Kansas, testified as a proponent for HB2136 stating the bad part about eminent domain is after the state makes you sell your land, or home, or farm ground, which Mr. Rohrer did not want to sell, the State of Kansas taxes you on the proceeds. He noted to take my land, make me sell it at a price big business has set, and then be taxed on that money is not right. Mr. Rohrer stated the company doing this is not a public utility but private investors who want to bring it through Kansas and noted the State will not receive electricity but the State of Missouri will. (Attachment 4) Mr. Rohrer stood for questions from Committee members.
Mr. Kiehnhoff, Wathena, Kansas, testified as a proponent for HB2136 stating he had 20 to 24 acres of his property consisting of easements taken which is a sizable amount. He noted if you take the lump sum on the capital gains it throws you in a tax consequence which will be a burden to pay and even to take over the years, it puts you in a higher tax bracket for the remaining years which is unfair. The transmission line running through his property will not help the State of Kansas because there are no subdivisions that draw off the power. (Attachment 5) Mr. Kiehnhoff stood for questions from Committee members.
Written testimony was submitted as a proponent to HB2136 by Mark Tomb, Kansas Association of Realtors, (Attachment 6)
Vice Chairperson Bergkamp closed the hearing for HB2136.
