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Minutes for HB2211 - Committee on Taxation
Short Title
Providing funding for STAR bond districts to replace lost food sales tax revenue.
Minutes Content for Wed, Feb 26, 2025
Chairperson Smith opened the hearing for HB2211.
Adam Siebers, Office of Revisor of Statutes, provided an overview for HB2211 that provides funding to replace lost food sales tax revenue for STAR Bond districts established prior to December 31, 2022, and modifies the tax increment definition for such districts. (Attachment 1) Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2211 stating the Department estimates the bill would decrease the State General Fund revenues by authorizing transfers that total $15.9 million from the State General Fund to the STAR Bond Food Sales Tax Revenue Replacement Fund in FY2026. That period would include the months of January, 2024 through April, 2025. The estimate for FY 2027 would be $8.2 million, FY 2028 the estimate would be $8.2 million as well. Ms. Smith stood for questions from Committee members.
Proponents:
Kiel Mangus, City Manager, Derby, Kansas, testified as a proponent for HB2211 noting the community of Derby, Kansas is impacted by the STAR Bond food sales tax reduction. By passing HB2211 the State fulfills the funding source pledge to help repay part of the STAR bonds and ensure a growing community like Derby can continue without shifting additional property tax burden on the residents of Derby, Kansas.(Attachment 2) Mr. Mangus stood for questions from Committee members.
Rachel Willis, Kansas Department of Commerce, testified as a proponent for HB2211 stating the bill provides funding to replace the lost food sales tax revenue for STAR Bond districts that were established prior to December 31, 2022. HB2211 will keep the established STAR Bond districts who have stores and sell groceries harmless since the eliminations of food sales tax. The bill reassures the business community that even though state policies may change, the Department of Commerce will uphold the business agreements that were previously made and ensure that the established districts are not negatively impacted by the elimination of food sales tax. (Attachment 3)
Craig Crossette, City Administrator for Goddard, testified as a proponent for HB2211 stating Goddard is a STAR Bond community like many others and has been impacted by the elimination of the state food sales tax without a revenue replacement. Goddard was provided with a one time reimbursement in 2023 which provided temporary relief but without continued support, communities are left shouldering the unexpected financial burden. Mr. Crossette stated until STAR Bonds are fully repaid, all sales tax revenue generated in the district will be diverted to debt service. (Attachment 4) Mr. Crossette stood for questions from Committee members.
Written only proponent testimony for HB2211 was submitted by the following:
Spencer Duncan, League of Kansas Municipalities, (Attachment 5)
Mark Manning, City of Wichita, (Attachment 6)
Opponents:
Written only opponent testimony for HB2211 was submitted by the following:
Dave Trabert, Kansas Policy Institute, (Attachment 7)
Michael Austin on behalf of Tanner Tempel, Americans for Prosperity, Kansas (Attachment 8)
Chairperson Smith closed the hearing for HB2211.
