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Minutes for SB175 - Committee on Assessment and Taxation
Short Title
Income tax, rates, modifications, credits; cigarettes and tobacco products, rates; alcoholic beverages, liquor enforcement, rates; business entities, filing fees.
Minutes Content for Mon, Feb 13, 2017
Chairperson Tyson opened a hearing on SB175.
Adam Siebers presented to the Committee a description of SB175. He stood for questions.
Sam Williams presented testimony to the Committee in support of SB175 by detailing each aspect of the bill: tax passive income including rents/royalties; freeze bottom income tax rate; eliminate community service contribution credit; increase annual report filing fee; cigarette tax increase; increase the tobacco products tax; and increase the liquor enforcement tax. (Attachment 1). He and Kathleen Williams, KDOR, explained the fiscal note and stood for questions.
Dr. Roy Jensen presented testimony to the Committee in support of SB175 by describing "the health impact of tobacco on Kansas". (Attachment 2) He stood for questions.
Conley Cornell presented testimony to the Committee in support of SB175 by saying "a significant increase in tobacco taxes will help offset what we as taxpayers are paying in healthcare cost attributed to its use". (Attachment 3) She stood for questions.
HiIlary Gee presented testimony to the Committee is support of SB175 because "this proposal not only brings in dollars to help address the state's budget shortfall, but will have . . . substantial health benefits for Kansans". (Attachment 4) She stood for questions.
Kevin Walker presented testimony to the Committee is support of SB175 by saying "a larger increase produces greater health benefits and is less susceptible to manipulation by the tobacco industry . . . to blunt the impact of increases. (Attachment 5) He stood for questions.
Written only testimony presented to the Committee in support of SB175 was provided by: Carolyn Gaughn, Kansas Academy of Family Physicians (Attachment 6); Leah Martin, American Lung Association (Attachment 7); Jodi Radke, Tobacco Free Kids (Attachment 8); Shalae Harris, March of Dimes (Attachment 9); Steve Coen, Kansas Health Foundation (Attachment 10); Tanya Dorf Brunner, Oral Health Kansas (Attachment 11); Rick Cagan, National Alliance on Mental Illness (Attachment 12); and Dennis Cooley, American Academy of Pediatrics (Attachment 13).
No neutral testimony for SB175 was presented to the Committee.
Tom Palace presented testimony to the Committee in opposition to SB175 indicating that "convenience store owners in Kansas who compete with bordering states will be at a tremendous competitive disadvantage". (Attachment 14) He stood for questions.
Philip Bradley presented testimony to the Committee in opposition to SB175 because "targeting individual industries only makes that industry less competitive in the market place and drives consumers to other states or on-line sales outlets where Kansas receives no tax revenue". (Attachment 15) He stood for questions.
Jason Watkins presented testimony to the Committee in opposition to SB175 because "this action would result in job losses at a time when the state can least afford to be shedding jobs". (Attachment 16) He stood for questions.
Kevin Timmons presented testimony to the Committee in opposition to SB175 by saying he "struggle(s) in Kansas to keep our drink prices competitive with my own organization. . .not to mention with my local competition". (Attachment 17) He stood for questions.
Steve Reynolds presented testimony to the Committee in opposition to SB175 because he believes that "increasing my input costs for alcohol will be detrimental to my business". (Attachment 18) He stood for questions.
Brad Smoot presented testimony to the Committee in opposition to SB175 because "the only folks that will benefit from this proposed tax increase live or work in Missouri or other border states". (Attachment 19) He stood for questions.
Written only testimony presented to the Committee in opposition to SB175 was provided by Doug Mays, on behalf of The Cigar Assn. of America (Attachment 20); Jeff Glendening, Americans for Prosperity (Attachment 21); Whitney Damron, Swisher International (Attachment 22); Dan Murray, National Federation of Independent Business (Attachment 23); Tuck Duncan, Wine & Spirits Wholesalers Assn. (Attachment 24); John Federico, Swedish Match North America & General Cigar (Attachment 25); Michael Garozzo, Garozzo's Ristorante (Attachment 26); Heidi Holliday, Kansas Center for Economic Growth (Attachment 27); Rich Marianos, Reynolds American (Attachment 28); Dave Trabert, Kansas Policy Institute (Attachment 29); Patrick Vogelsberg, Kansas Assn. of Realtors (Attachment 30); Larrie Ann Brown, Wine Institute (Attachment 31); Aaron Rosenow, Kansas Association of Beverage Retailers (Attachment 32); and Eric Stafford, Kansas Chamber (Attachment 33).
When all questions from the Committee were answered, Chairperson Tyson closed the hearing on SB175.
The meeting was adjourned at 2:28pm.