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Minutes for HB2753 - Committee on Taxation
Short Title
Review of tax credits, tax exemptions and economic development programs.
Minutes Content for Mon, Mar 5, 2018
Mr. Wells provided an overview on HB2753 stating in calendar year 2019 the Commissioner on Insurance, Secretary of Commerce and the Secretary of Revenue would make annual presentations to the relevant legislative committees on various tax credits and programs that they administer. This would repeat every three to four years. The presentations would include description of the credit or programs, history and goals, assessment of the credit or program, design and administration, also an estimate of the economic and fiscal impact of the credit or program. He also noted the property tax and sales tax exemptions are among the programs to be covered by the Secretary of Revenue in 2019 and 2020 respectively. Mr. Wells stood for questions from the Committee.
Representative Gartner testified as a proponent for HB2753 stating now that with the passage of HB2572 the Committee can now address the evaluation process. Tax credits and incentives are one of Kansas' primary economic development tools. The state forgoes around $6 billion through credits and exemptions. According Pew Charitable Trusts, evaluation is a proven way to improve the effectiveness of incentives (Attachment 4). Representative Gartner stood for questions from the Committee.
The committee discussed the evaluation process and a systematic approach to evaluating every tax credit.
Heidi Holliday, Kansas Center for Economic Growth presented written testimony as a proponent for HB2753 (Attachment 5).
Hearing closed on HB2753.
