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Minutes for HB2306 - Committee on Taxation
Short Title
Providing a sales tax exemption for purchases made by Kansas suicide prevention HQ, inc.
Minutes Content for Wed, Mar 1, 2023
Chairperson Smith opened the hearing for HB2306.
Mr. Siebers presented an overview for HB2306 that provides a tax exemption for purchases of property and services by the Kansas Suicide Prevention HQ, Inc. (Attachment 9) Mr. Siebers stood for questions from Committee members.
Ms. Smith presented an overview of the fiscal note for HB2306 that would decrease state revenues by $42,000 in FY 2024. Of that total, the State General Fund is estimated to decrease by $35,000 in FY 2024, while the State Highway Fund is estimated to decrease by $7,000 in FY 2024. The bill also is estimated to decrease local sales tax revenues by approximately $18,000 in FY 2024. Ms. Smith stood for questions from Committee members.
Proponent:
Monica Kurz, Vice President for Policy & Prevention, Kansas Suicide Prevention HQ, testified as a proponent for HB2306 stating they are a 501c(3) non-profit with an operating budget of just under $5.0 million. Two of the largest funding sources are the Kansas Department of Aging and Disability Services (KDADS) and Douglas County Government. Ms. Kurz noted the Kansas Suicide Prevention Headquarters is requesting a sales a tax exemption status to avoid paying tax on taxpayer funding. The money can be reinvested in service delivery to the people of Kansas. (Attachment 10) Ms. Kurz stood for questions from Committee members.
Ramon Gonzalez, member of the Suicide Prevention Board, testified as a proponent for HB2306 stating it is a good organization and requested the Committee support the bill. No testimony provided.
Opponent:
Michael Austin, Americans for Prosperity, Kansas submitted written testimony as an opponent to HB2306. (Attachment 11)
Chairperson Smith closed the hearing for HB2306.
In response to a question, Mr. Siebers stated both purchases would currently be taxed for personal property or services noting labor would be a service and is currently taxable. The tax exemption would be allowed to flow through to the groups. If they purchase service of labor that is currently taxable they would not pay sales tax on such service. If someone donates their time there would be no impact.
In response to a question, Ms. Kurz stated the two large centers that are providing 988 crisis call center services are divisions of county government that is the Johnson County Mental Health Center, a division of Johnson County and Comcare of Sedgwick County. The centers are sales tax exempt as a 501(c)(3) nonprofit and the fourth center is also nonprofit but do a small amount of work as 988 crisis call center and are not receiving funds.
Chairperson Smith adjourned the meeting at 4:15 p.m.
