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Minutes for HB2276 - Committee on Taxation
Short Title
Providing an income tax credit for an eligible small business that purchases qualified local news organization advertising.
Minutes Content for Thu, Feb 27, 2025
Chairperson Smith opened the hearing for HB2276.
Adam Siebers, Office of Revisor of Statutes, provided an overview for HB2276 that establishes a tax credit for eligible small businesses that purchase qualified local news organization advertising. This would apply for tax years 2026 through 2029 (Attachment 9)
Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2276 stating the bill would decrease the State General Fund by $3.3 million in FY 2027 and $2.3 million in FY 2028. To come up with the estimate, the Department reviewed firms and establishments data from the U.S. Census Bureau. Data indicates that there are 19,566 eligible businesses in Kansas with between five and 50 employees that could participate in this tax credit, and if 10.0 percent of those eligible businesses utilized the tax. Ms. Smith stood for questions from Committee members.
Proponents:
Daryn Keeter, Keeter Roofing & Remodeling, testified as a proponent for HB2276. He noted small businesses use advertising as a primary method for acquiring customers and generating revenue and Google has become one of the leading sources of advertising in the nation for many industries. One of the challenges with Google is to maintain ranking with other businesses to stay ahead. HB2276 will enable his business to utilize local news as a media outlet to reach homeowners in his community who live and shop locally. (Attachment 10) Mr. Keeter stood for questions from Committee members.
Jeff Cott, Derby Media Resources, testified as a proponent for HB2276 stating in the last five to ten years, there have been more challenges and problems with very small businesses with technology and communications resources that are available. Some businesses have to spend more money to get the same results to bring consumers in their doors. He noted Google and Facebook or whatever are not reinvesting in the community like a local business will. Many local people want to reinvest in their schools, in their communities and HB2276 will provide that opportunity.(Attachment 11) Mr. Cott stood for questions from Committee members.
Written proponent testimony for HB2276 was submitted by the following:
Natalie Muruato, Grow Clay County, (Attachment 12)
Lori Henson, Rebuild Local News, (Attachment 13)
Arty Hicks, Arkansas City Area Chamber of Commerce, (Attachment 14)
Emily Bradbury, Kansas Press Association, (Attachment 15)
Jessica Falk, Cowley County Economic Development, (Attachment 16)
John Kennedy, Greeley County Community Development, (Attachment 17)
Kenn Knepper, The Citizens State Bank, (Attachment 18)
Sarah Werner, Winfield Area Chamber of Commerce, (Attachment 19)
Stacy Davis, Sumner County Economic Development, (Attachment 20)
Wayne Kruse, OneMarysville, (Attachment 21)
Zoey Wadick, CVB & Communications Director, City of Council Grove, (Attachment 22)
Opponent:
Written opponent testimony for HB2276 was submitted by Dave Trabert, Kansas Policy Institute, (Attachment 23)
Chairperson Smith closed the hearing for HB2276.
