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Minutes for HB2098 - Committee on Taxation
Short Title
Providing a sales tax exemption for purchases by not-for-profit corporations operating a community theater.
Minutes Content for Thu, Jan 30, 2025
Chairperson Smith opened the hearing for HB2098.
Adam Siebers provided an overview for HB2098 stating the bill would provide a sale tax exemption for purchases made by a not-for-profit corporation that is exempt from a federal income tax and operates a community theatre in the state of Kansas. (Attachment 7)
Kathleen Smith provided an overview of the fiscal note for HB2098 stating the bill would reduce state revenues by $169,500 in FY 2026. Of this amount, State General Fund revenues are estimated to decrease by $139,000, while the State Highway Fund revenues are estimated to decrease by $30,500. HB2098 is also estimated to decrease local revenue by $60,500 in FY 2026. Ms. Smith stood for questions from Committee members.
Proponents:
Angela Cassette, Music Theatre Wichita, testified as a proponent for HB2098 stating voting yes corrects decades of oversight where the state's nonprofit theaters are ranked less worthy than other small businesses and other nonprofit organizations. She noted there are several businesses of approximately the same size as music theater in Wichita who are subcontractors for the aviation industry who do not pay sales tax. The theaters in Kansas pay sales tax and pay taxes again on end products. The tax obligation on sold tickets was $159,259. Ms. Cassette stated passing HB2098 is a low cost, high return, impactful way for the state to even the playing field and support what the nonprofit theaters do in the state of Kansas. (Attachment 8)
Ms. Cassette stood for questions from Committee members.
Michael Spicer, Salina Community Theatre, testified as a proponent for HB2098 noting more than 90.0 percent of every dollar that comes into the Salina Theatre is spent in the local economy, having generated more than $9.0 million and more than $305,000 in sales tax revenue in the past decade. Many of the patrons generate income and tax revenue by shopping and buying gas and causing more than 400 overnight stays at local hotels. All savings realized from this bill will be reinvested into production and personnel. (Attachment 9) Mr. Spicer stood for questions from Committee members.
Written proponent testimony for HB2098 was submitted by the following:
Mary Doveton, Theatre Lawrence (Attachment 10)
Rebecca Dibben, Great Plains Theatre, (Attachment 11)
Travis Grossman, Theatre Atchison, (Attachment 12)
Vicki Brokke, Topeka Civic Theatre, (Attachment 13)
Opponent:
Written opponent testimony for HB2098 was submitted by Spencer Duncan, League of Kansas Municipalities (Attachment 14)
Chairperson Smith closed the hearing for HB2098.
Chairperson Smith adjourned the meeting.
