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Minutes for SB55 - Committee on Taxation
Short Title
Substitute for SB 55 by Committee on Assessment and Taxation - Expanding and clarifying the property tax exemption for Strother field airport property.
Minutes Content for Wed, Jan 24, 2024
Chairperson Smith opened the hearing on Substitute for SB55.
Adam Siebers, Assistant Revisor, Kansas Office of Revisor of Statutes, provided an overview of Substitute for SB55 that would expand and clarify the property tax exemption for Strother Field airport (Attachment 1). Mr. Siebers stood for question from Committee members.
Kathleen Smith, Kansas Department of Revenue, noted Substitute for SB55 has a negligible impact to the state building fund. Ms. Smith stood for questions from Committee members.
Proponents:
Mike Taylor, lobbyist on behalf of Strother Field Airport/Industrial Park, testified as a proponent for Substitute for SB55 stating the bill will correct some confusion regarding the tax exempt status of the airport. He noted the airport is a municipal airport owned by the cities of Arkansas City and Winfield and should be tax exempt (Attachment 2). Mr. Taylor introduced Ed Young, Aviation Attorney representing Strother Field.
C. Edward Young, Aviation Attorney on behalf of Strother Field Airport/Industrial Park, testified as a proponent for Substitute for SB55. The bill makes the two following small changes to the Strother Field exemption:
- It clarifies that the cities of Ark City and Winfield are the intended recipients of the exemption.
- Exempts property that the Strother Field Airport Commission owns from taxation.
Making the two small changes to the Strother Field exemption would clarify how it should be treated and would be consistent with the original purpose and language that was passed in 1991 (Attachment 3). .
In response to questions, Mr. Young deferred to Shawn McGrew, Strother Field Manager. Mr. McGrew stated the facility is currently owned by the cities of Winfield and Arkansas City. He stated Strother Field purchased some property to the northeast corner which is farm ground that would protect the airport property and probably will not be developed. He noted the Board of Tax Appeals (BOTA) agreed to provide the tax exemption. A warehouse was purchased and BOTA requested Strother Field to work it out and in the meantime SB55 had been addressed and BOTA disallowed the tax exemption. Mr. McGrew stated there are many business located at Strother Field who pay property taxes and the economic impact study shows there are between 1800 to 2000 employees. Strother Field has many tenants and is similar to a small municipality. He stated tax dollars are collected which does not come back to Strother Field and in order to stay self-sufficient, they look at land leases and hanger rentals which helps generate revenue.
Opponent:
Written testimony in opposition to Substitute for SB55 was submitted by Michael Austin, Amercians for Prosperity (Attachment 4)
Chairperson Smith closed the hearing for Substitute for SB55.
Chairperson Smith stated the House Taxation meeting will be cancelled on January 31, 2024 due to the Economic Outlook Conference that will be held that day.
There being no further business, Chairperson Smith adjourned the meeting.
