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Minutes for HB2177 - Committee on Taxation
Short Title
Concerning sales and compensating use tax; origin sourcing.
Minutes Content for Wed, Feb 15, 2017
Scott Wells, Assistant Revisor provided an overview on HB2177. Mr. Wells noted the bill concerns sales tax and how sales are sourced in the State of Kansas. Under the provision of HB2177, the starting point of the sale to where the seller receives the order would be allowed in certain circumstances. The circumstance would be the seller has to receive the order and the purchaser has to receive the property in the State of Kansas. The record keeping system used by the seller to calculate the tax would be able to capture the location where the order is received. An amendment would be introduced to make sure we are in compliance with streamline sales agreement.
Mr Wells stood for questions from the Committee.
Ms. Smith noted there will be no fiscal impact on the state but there will be a local impact. The revenue will switch based upon the interstate transactions.
Ms. Smith stood for questions from the Committee.
Proponents:
Eric Stafford, Vice President of Government Affairs, Kansas Chamber testified in support of HB2177. Mr. Stafford noted an amendment from utilities, and a notice from the Department of Revenue which goes back to 2003 when Kansas joined the streamline sales tax agreement. (Attachment 5) (Attachment 6) (Attachment 7 )
Mr. Stafford stood for questions from the Committee.
Mike Smallwood, owner of Smallwood Lock Supply in Kansas City, Kansas testified as a proponent of HB2177. (Attachment 8)
Mr. Smallwood stood for questions from the Committee.
Opponents:
Written testimony in opposition to HB2177 was presented by:
Nolan Sunderman, Assistant City Manager, City of Shawnee, Kansas (Attachment 9)
Steven Cowen, Black Hills Energy (Attachment 10)
Neutral:
Larry Baer, General Counsel, League of Kansas Municipalities testified as neutral to HB2177. (Attachment 11)
Written testimony as neutral to HB2177 was presented by:
Michael Koss, Assistant City Attorney, Overland Park, Kansas (Attachment 12)
Ashley Sherard, Lenexa Chamber of Commerce (Attachment 13)
There being no other conferees, Chairperson Johnson closed the hearing on HB2177.
Meeting was adjourned at 4:40 p.m.
Next meeting scheduled for Thursday, February 16, 2017
