House Status:
Senate Status:
Senate Status:
Minutes for HB2377 - Committee on Taxation
Short Title
Providing that countywide retailers' sales tax is apportioned based on total assessed valuations of property taxes rather than property taxes levied.
Minutes Content for Tue, Feb 25, 2025
Chairperson Smith opened the hearing for HB2377.
Adam Siebers, Office of Revisor of Statutes, provided an overview for HB2377 that would amend how the countywide retailer's sales tax would be distributed under the general countywide retailer's sales tax authority by counties. The change to HB2377 would be based on the total assessed valuations used to calculate the counties and each city. Mr. Siebers stated instead of it being tax levies, it would be the total assessed valuations used to calculate the proportionality to determine how the revenue is distributed. (Attachment 1) Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2377 that would only affect the local sales tax collections and would have no fiscal effect on state revenues. Ms. Smith stated if the intent is to swap out the property tax levied for the assessed valuation, the Department may ask for clarifying language in Section one of HB2377. Ms. Smith stood for questions from Committee members.
Proponents:
Jim Howell, Sedgwick County Commissioner, testified on behalf of the Sedgwick County Board of County Commissioners as a proponent for HB2377. Mr. Howell stated the genesis of the bill is Sedgwick County lowered the mill levy for two years in a row and noticed when lowering the mill levy, it also gave up sales tax dollars, which is the problem. The county supports HB2377 because it would modify the second half of the formula to determine each government's share of sales tax by tying such share to the total assessed valuation for each government, rather than taxes levied.(Attachment 2) Mr. Howell stood for questions from Committee members.
Mike Taylor, Kansas County Commissioners Association, testified as a proponent for HB2377 that would change the way sales tax distributions are handled. The bill changes the formula to use total assessed valuation to allow County Commissioners to reduce the reliance on property tax without losing sales tax dollars which is a critical revenue source. (Attachment 3) Mr. Taylor stood for questions from the Committee.
Committee discussion ensued to make sure there are no unintended consequences and requested Research to put together some information on how the different counties and cities would be impacted.
Written only proponent testimony was submitted by Jay Hall, Kansas Association of Counties, (Attachment 4)
Chairperson Smith closed the hearing for HB2377 .
Chairperson Smith returned to the order of business for a bill introduction.
Chairperson Smith requested a bill concerning reinstituting a demand of transfer for $60.0 million for local governments. It will be incentive based to receive the distribution based on CPI and different growth factors. (25-rs-0822). Without objection, the bill was approved for introduction by the Committee.
Chairperson Smith adjourned the meeting.
