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Minutes for HB2400 - Committee on Taxation
Short Title
Requiring certain remote sellers to collect Kansas sales tax.
Minutes Content for Wed, Mar 22, 2017
Scott Wells, Assistant Revisor provided an overview on HB2400 which would require certain remote sellers to remit sales tax and follow applicable procedures and requirements of the Kansas Retailers Sales Tax Act as if they had physical presence in the state. This would apply to retailers who meet either of the following two requirements: 1) Their gross revenue from sales into the state exceeds $100,000; 2) they made those sales in 200 or more transactions.
Reed Holwegner, Research Analysts provided a general overview of internet sales and taxation. Mr. Holwegner provided a colored table and testimony from Max Behlke, National Conference of State Legislatures headquartered out of Washington D.C. NCSL has been tracking this legislation and shows a number of states that have introduced legislation of some type and the status of the legislation. There are 58 bills or resolutions (Attachment 2) (Attachment 3) (Attachment 4), Table 2 is legislation that was considered during the 2016 session and has passed in various states. The states highlighted in yellow have enacted legislation (Attachment 5)
Mr. Holwegner stood for questions from the Committee.
Mark Beshears, Attorney Department of Revenue noted Colorado has come to an agreement with the Digital Marketing Association to make their reporting requirements effective July 1, 2017. The South Dakota circuit court ruled on March 7, 2017 in favor of the defendant stating essentially the Quill standard is still the law that you must have physical presence in the state.
Mr. Beshears stood for questions from the Committee.
Ms. Smith noted HB2400 would generate around $2M in sales tax annually. $1.67M would go to the State General Fund and $320,000 to the State Highway fund.
Cindy Green, Deputy Director, League of Kansas Municipalities testified as proponent for HB2400. (Attachment 6)
Written testimony was submitted by the following in support of HB2400:
Kiel Mangus, Assistant City Manager, City of Manhattan testified as a proponent for HB2400. (Attachment 7)
Meeting adjourned at 4:42 p.m.
Next meeting scheduled March 23, 2017.
