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Minutes for HB2387 - Committee on Taxation
Short Title
Sales tax exemption for certain property destroyed by wildfires in 2017.
Minutes Content for Mon, Mar 13, 2017
Scott Wells, Assistant Revisor provided an overview on HB2387. The bill provides for an exemption from the Kansas Retail Sales Tax for all sales of tangible personal property and services purchased during calendar year 2017 and 2018 necessary to construct, reconstruct, repair or replace any residence, utility poles owned by the rural electric cooperative or fence used to enclosed land devoted to agriculture that was damage or destroyed by wildfires in 2017. Any consumer who has purchased the materials previous to this law going into effect would be eligible for a refund by the Department of Revenue upon application.
Mr. Wells stood for questions from the Committee.
Kathleen Smith, Director, Department of Revenue noted the fiscal impact of HB2387 is unknown at this time due to extent of the damage has not been determined.
The Committee discussed development of the exemption form where individuals would apply for the exemption certificate and present to the vendor at the time of the purchase.
Proponents:
Representative Kyle Hoffman, District 116 testified as a proponent to HB2387. Representative Hoffman noted having learned from last years' wildfire in Comanche and Barber counties, he would like to see an amendment that extends the tax rebate for last year's fire damage and moving the tax relief from a rebate to an exemption at the point of sales. (Attachment 1)
Representative Hoffman stood for questions from the Committee.
In response to a question from the Committee regarding the sales tax exemption form, Kathleen Smith advised the Department of Revenue would provide a one page application form for the individual that has had the fencing destroyed by fire, the individual would fill out the form and the Department of Revenue would issue the exemption certificate. The exemption certificate would be presented to the vendor when making a purchase and the vendor would not charge sales tax.
Representative Ken Rahjes, 110th District testified as a proponent for HB2387 (Attachment 2) and noted he will be submitting an amendment to provide extra time for ranchers and farmers in Kansas to repair and reconstruct the damage from the fire.
Mike Beam, Sr. Vice President, Kansas Livestock Association testified in support of HB2387. (Attachment 3)
Written testimony in support of HB2387 submitted by:
Rich Felts, President, Kansas Farm Bureau testified in support of HB2387. (Attachment 4)
Chairperson Johnson closed the hearing on HB2387.
