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Minutes for HB2685 - Committee on Taxation
Short Title
Providing a sales tax exemption for registered charitable organizations.
Minutes Content for Mon, Mar 11, 2024
Adam Siebers, Assistant Revisor, provided an overview for HB2685 that would provide a sales tax exemption for all sales of tangible personal property purchased by any organization determined to be in good standing with the Secretary of State that is exempt from federal income taxation presume to section 501(c)(3) of the federal internal revenue code. Mr. Siebers responded to questions from Committee members.
In response to a question, Representative Sawyer stated the fiscal note for HB2685 is $34.4 million annually.
Committee discussion ensued regarding the fiscal note for HB2685 and the number of 501(c)(3)'s.
Kathleen Smith, Kansas Department of Revenue stated the $34.4 million would be based upon if the Kansas Department of Revenue were to allow an organization that is exempt from federal income tax pursuant to section 501(c)(3) of the federal Internal Revenue code. This would be language the department regularly used in some of the other sales tax exemptions for these 501(c)(3)'s.
Chairperson Smith moved, seconded by Representative Eplee, to amend HB2685. (Attachment 1) Motion passed.
Representative Eplee moved, seconded by Representative Hoheisel, the Committee recommend HB2685 favorable for passage as amended. Motion passed.
