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Minutes for HB2146 - Committee on Taxation
Short Title
Property tax exemption for certain property used for educational or scientific purposes.
Minutes Content for Tue, Mar 7, 2017
Scott Wells, Assistant Revisor briefed the Committee on HB2146 and noted the bill amends 79-201A by adding a new paragraph on Page 7 of the bill, Lines 35 thru 41. It provides a property tax exemption for all tangible personal property and all real property owned by a not-for-profit corporation exempt from federal income taxes under 501(c)6 which is leased by a post-secondary educational institution and regularly used for educational or scientific purposes. The exemption would be effective for tax year 2016 and all tax years thereafter.
Amelia Kovar-Donohue, Attorney, Department of Revenue noted the fiscal note for HB2146 indicates there is a decrease in property tax revenues by adding the new exemption. Ms. Kovar-Donohue stated it is not possible at this time to estimate what the decrease will be, not knowing what the property might qualify for exemption.
Proponents:
Representative Claeys, 69th District testified in support of HB2146. (Attachment 1) who explained the Kansas State University Bulk Solids Innovation Center. (Attachment 2) The building opened in June of 2015 and has been taxed the entire time under protest. The rent that is paid by Kansas State Polytechnic, Kansas State University is 85% of the income to the facility.
Representative Claeys stood for questions from the Committee.
Responding to a question from Representative Corbert, Representative Claeys noted the Center paid the taxes under protest and that lead to an appeal to the Board of Tax Appeals; however, without the county's support, it would be difficult to prevail under those circumstances. It now appears Saline County has had a change of heart which would provide a 10-year tax exemption. The Center seeks a permanent tax exemption because the facility is leased by an educational institution which is primarily responsible for paying the property tax.
Don Weiser, President/CEO Salina Area Chamber of Commerce testified in support of HB2146. (Attachment 3)
Responding to a question from Representative Corbert and Representative Davis, Mr. Weiser will provide money paid to K-State by the 43 partner companies listed in Representative Claeys' testimony.
Responding to a question from Chairperson Johnson, Mr. Weiser will provide information to the Committee regarding the County and their position on HB2146.
Todd W. Smith, General Manager Coperion K-Tron, Salina, Kansas testified in support of HB2146. (Attachment 4) (Attachment 5) In answer to a previous question, Mr. Smith provided an estimate on the amount of space allocated to Coperion K-Tron which is 350 square feet out of nearly 13,000 square feet which is 3%.
Written testimony was presented in support of HB2146 by the following:
Jason A. Gage, City Manager, City of Salina. (Attachment 6)
Kenneth W. Wasserman, Attorney, Norton, Wasserman, Jones, Kelly Attorneys at Law, LLC. (Attachment 7)
Joyce A. Volk, Insurance and Financial Services Agent, Farmers Insurance (Attachment 8)
Doug L. McKinney, Executive Director, North Central Regional Planning Commission, Beloit, Kansas. (Attachment 9)
Frieda Mai Weis, President PKM Steel Service (Attachment 10)
Robert Freelove, MD, Salina Family Heathcare Center, Salina, Kansas (Attachment 11)
Jeff Thompson, President of Vortex Valves, Salina, Kansas (Attachment 12)
William E. (Trey) Mowery, Board Chairman, Salina Economic Development Corporation (Attachment 13)
Jon H. Starks, President UMB Bank, Salina and Abilene (Attachment 14)
R. Kurt Barnhart, Ph.D. Associate Dean of Research, Kansas State University Polytechnic (Attachment 15)
Chairperson Johnson closed the hearing on HB2146.
