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Minutes for HB2005 - Committee on Taxation
Short Title
Establishing the veterans' valor property tax relief act providing an income tax credit or refund for eligible individuals.
Minutes Content for Wed, Feb 5, 2025
Chairperson Smith opened the hearing for HB2005.
Adam Siebers, Office of Revisor of Statutes, provided an overview for HB2005 that establishes the veterans' valor property tax relief. (Attachment 1) Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2005 stating the Department is estimating the bill would decrease the State General Fund revenue by $11.4 million in FY 2026, $12.2 million in FY 2027, and $13.0 million in FY 2028. Ms. Smith stated to formulate the estimate, the Department reviewed data based upon the disabled veterans from the Kansas Office of Veterans Services which shows there are approximately 8,700 veterans who are permanently and totally disabled or unemployable in Kansas. Ms. Smith stood for questions from Committee members.
Proponents:
Representative Pat Proctor, District 41, testified an a proponent for HB2005 and responded to a previous question regarding disabilities. He stated the first category is 100 percent totally disabled. The second category is 100 percent permanent which is a separate category. It's basically like a disability so severe and will never get better is given a total classification so the veteran doesn't have to keep reevaluating. The third category is total disability due to unemployability. This is a special category that does not have the 100 percent rating but because of the type of disability they have, they are not able to work. HB2005 creates a 75 percent property tax exemption for totally disabled veterans. The exemption would be paid as a rebate by the state and increase the number of disabled veterans eligible for property tax relief. (Attachment 2)
Mike Kelly, Military Officers Association of America, testified as a proponent for HB2005 stated there are approximately 180,000 veterans in Kansas. The bill would help about 5.0 percent of the veterans. Mr. Kelly was concerned about the fiscal note for HB2005 and the demographic information that was provided. He stated he would be surprised if in three years that HB2005 passes, the refunds would meet the the fiscal note.(Attachment 3)
Tom Hollis, United States Army, Retired, testified as a proponent for HB2005 that allows Kansas to compete against other states to draw and retain veterans and continue to be labeled as a veteran friendly state. (Attachment 4)
Vanessa Reid, Kansas citizen, testified as a proponent for HB2005 stating far too many veterans separate from Kansas especially in Leavenworth county. Incentives are needed statewide to keep veterans in the state of Kansas once they separate from the military. (Attachment 5)
Written only testimony was submitted by the following as proponents for HB2005:
Riley County Board of County Commissioners, (Attachment 6)
Jay Hall, Kansas Association of Counties, (Attachment 7)
Dennis Gogel, US Army Retired, (Attachment 8)
Daniel Young, CMSgt. (Retired), USAF (Attachment 9)
Buck Bradley, Kansas Citizen, (Attachment 10)
Robert Haskins, USAF, Vietnam Veteran, 100% Disabled, (Attachment 11)
Spencer Duncan, League of Kansas Municipalities, (Attachment 12)
Daniel Strom, USAF, (Attachment 13)
County of Leavenworth, Board of County Commissioners, (Attachment 14)
Chairperson Smith closed the hearing for HB2005.