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Minutes for SB117 - Committee on Taxation
Short Title
Expanding the property tax exemption for Strother field airport property.
Minutes Content for Thu, Mar 6, 2025
Chairperson Smith opened the hearing for SB117.
Adam Siebers, Office of Revisor of Statutes, provided an overview for SB117 that would expand and clarify the property tax exemption for the Strother Field Airport. Under current law there is a current exemption for Strother Field Airport; however, this bill would expand the exemption. The bill clarifies that the property of Strother Field Airport will be exempt from ad valorem and property tax. (Attachment 17) Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, noting the state funds that would be directly affected by SB117 would be the Educational Building Fund, and the State Institutions Building Fund. The Department is estimating the bill would decrease revenues to the two funds by approximately $3,500 in FY 2025. Ms. Smith stood for questions from Committee members.
Proponents:
Mike Taylor, Strategy Consultants, Kansas testified as a proponent for SB117 stating it is about economic development and not having to apply the property taxes to the residents of Winfield, Kansas. Strother Field Industrial Park Airport is a $2.l billion economic impact on south central Kansas with 1,700 employed and a payroll of approximately $190 million. The bill clarifies that property of Strother Field Airport is exempt from ad valoren property tax and would operate without burdening local taxpayers. (Attachment 18)
Taggart Wall, City Manager of Winfield, Kansas, testified as a proponent for SB117 that supports a $2.1 billion economic footprint accounting for nearly half of Kansas's general aviation economic impact. He noted in 1991 and 1992, the Kansas Legislature recognized Strother Field's status and granted it an exemption from property taxes on all land and buildings within the airport and industrial park. Recently questions were raised if Strother Field is still entitled to the exemption and now at risk of having to impose a property tax on airport and industrial park a tax that would place an undue burden on local taxpayers. (Attachment 19)
Randy Frazer, City Manager, City of Arkansas City, testified as a proponent for SB117 stating Strother Field is a critical economic driver in south central Kansas that operates without a single dollar of local property tax and relies entirely on business rent to sustain the airfield. Strother Field is owned by Arkansas City and Winfield and takes on the financial responsibility The bill clarifies the Legislature's original intent by ensuring that all land and buildings at Strother Field remain property tax exempt, just as they were intended to be under the 1991-92 amendments. (Attachment 20)
The conferees stood for questions from Committee members.
Chairperson Smith closed the hearing for SB117.
Chairperson Smith adjourned the meeting.
