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Minutes for SB52 - Committee on Taxation
Short Title
Enacting the Kansas film and digital media industry production development act, providing a tax credit and sales tax exemption to incentivize film, video and digital media production in Kansas, establishing a program to be administered by the secretary of commerce for the purpose of developing such production in Kansas and requiring the secretary of commerce to issue reports to the legislature regarding the program.
Minutes Content for Wed, Mar 12, 2025
Chairperson Smith opened the hearing for SB52.
Adam Siebers, Office of Revisor of Statutes, provided an overview for SB52 that mirrors HB2038. The Senate Committee added a limitation to the sales tax exemption provided under the Act where the aggregate total amount of sales exempt from tax shall not exceed $1.0 million per year, per production company which includes any contractors of the production company. Additionally the amount of tax credits available cumulatively for each year was lowered from $10.0 million to $5.0 million. (Attachment 2) Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, provided an overview for SB52 estimating as amended would decrease the State General Fund revenue by $5.0 million for the income tax credit for FY 2026, FY 2027 and FY 2028. It would also reduce the State General Fund and State Highway Fund for a combined total of $65,000 for the sales tax exemption for all three years assuming that it was fully used. Ms. Smith stood for questions from Committee members.
Proponents:
Stuart Little, Little Government Relations, testified as a proponent for SB52 on behalf of Grow Kansas Film that is made up of small businesses, Kansas filmmakers, and educators, all local people. SB52 was amended to reduce the tax credit from $10.0 million to $5.0 million and the sales tax exemption was capped at $1.0 million. SB52 is now half the cost, while still generating $15.0 million annually in spending in Kansas when the credit is fully utilized. Mr. Little stood for questions from Committee members.(Attachment 3)
Written only proponent testimony for SB52 was submitted by the following:
Rachel Willis, Kansas Department of Commerce, (Attachment 4)
Katrina Abraham, Greater Kansas City Chamber of Commerce, (Attachment 5)
Bonnie S. Lowe, The Chamber, Lawrence, Kansas, (Attachment 6)
Neutral:
Spencer Duncan, The League of Kansas Municipalities, submitted written only neutral testimony for SB52. (Attachment 7)
There was no opponent testimony submitted for SB52.
Chairperson Smith closed the hearing for SB52.
