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Minutes for HB2203 - Committee on Taxation
Short Title
Providing a sales tax exemption for purchases made by sleep in heavenly peace, inc.
Minutes Content for Mon, Mar 20, 2023
Chairperson Smith opened the hearing for HB2203.
Adam Siebers provided an overview of HB2203. (Attachment 2) Mr. Siebers stood for questions from Committee members.
Kathleen Smith, KDOR, provided an overview on the fiscal note for HB2203 noting the bill would decrease state revenue by $1,850 in FY 204. Of that total, the State General Fund is estimated to decrease by $1,550 in FY 2024 and the State Highway Fund is estimated to decrease by $300 in FY 2024. Ms. Smith stood for question from Committee members.
Proponents:
Luke Mickelson, Founder and Executive Director, Sleep in Heavenly Peace, testified as a proponent for HB2203 by Webex noting they are a 501c(3) non-profit organization. The organization started as a Christmas project in a garage in Twin Falls, ID in 2012 and has grown to a nationwide organization with 326 chapters having delivered over 120,000 beds. Sleep in Heavenly Peace continues to grow and expand and securing a sales tax exemption in the State of Kansas will help to be able to provide comfortable beds for kids. (Attachment 3) Mr. Mickelson stood for questions from Committee members.
Patrick O'Malley, PhD, Kansas Benedictine College, testified as a proponent for HB2203 stating one of the great aspects of the organization is getting the community involved in solving the problem of child bedlessness. For 2022, the Sleep in Heavenly Peace chapters in Kansas paid $2,515 in sales tax. Passing the exemption, the minor loss of revenue will be more than offset by improving the lives and education of the children served. (Attachment 4) Mr. O'Malley stood for questions from Committee members.
Ted Koval, Volunteer for Sleep in Heavenly Peace, Kansas Benedictine College Chapter, testified as a proponent for HB2203 noted the receiving of a sales tax exemption will help in the growth of the Kansas chapters. Since 2018 a total of 1,689 beds have been delivered in the state of Kansas and as of March 10, 2023 there are 308 kids that are already waiting on beds. In 2022, the three Kansas chapters paid an estimated $2,515 in Kansas sales tax which is used on materials such as lumber, tools, and bedding. The materials plus the mattresses make the cost of a new bed around $200 each. If exempt from taxes in 2022, another 12 beds could have been made. (Attachment 5) Mr. Koval stood for questions from Committee members.
Written testimony was submitted by Richard E. Neu, President, Sleep in Heavenly Peace, Kansas, Sedgwick County as a proponent for SB2203. (Attachment 6)
Chairperson Smith closed the hearing for SB2203.
There being no further business, the meeting was adjourned.
