House Status:
Senate Status:
Senate Status:
Minutes for HB2762 - Committee on Taxation
Short Title
Exempting mechanical amusement devices from sales tax, providing for use of a tax stamp.
Minutes Content for Tue, Apr 3, 2018
Scott Wells, Senior Assistant Revisor provided an overview on HB2762 stating the bill would enact the Kansas Mechanical Amusement Device Tax Act beginning on January 1, 2019. Operators and distributors would be required to get an annual license from the Director of Taxation to operate, sell, lease or deliver possession of mechanical amusement devices in Kansas. Mechanical amusement devices are defined to mean any machine that upon insertion of a coin, currency, credit card or substitute in the machine may be operates or may be operated or used for a game, contest or amusement of any description. The tax would be placed upon each mechanical amusement device operated in Kansas for profit or gain and the rate of the tax would be $35 a year per device. Mechanical amusement devices placed into operation after July 1 would be subject to a tax of $20 for the remainder of the year. Each mechanical amusement device would be required to have an affixed decal that shows the tax has been paid. Mr. Scott stood for questions from the Committee.
Kathleen Smith, Department of Revenue provided an overview on the fiscal note for HB2762 stating the bill would increase revenues by $575,000 in FY 2019, including $595,000 to the State General Fund. Agency expenditures would increase by $418,456 from the State General Fund. Ms. Smith stood for questions from the Committee.
In response to a question, Ms. Smith stated the reason for the increase in agency expenditures would be for administration of the tax stamp. She note a new unit would be required with 7.0 full time employees.
Wallace White testified as a proponent for HB2762 stating this is a bill he has proposed due to being in the industry for 17 years (Attachment 1). Mr. White stood for questions from the Committee.
Hearing closed on HB2762.
