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Minutes for SB13 - Committee on Assessment and Taxation
Short Title
Increasing and allowing Kansas itemized deductions, allowing individual expensing deduction, providing for certain income tax credits, allowing rural opportunity zone for certain counties, extending certain counties countywide retailers' sales tax, providing for sales tax definitions and exemptions for certain sales.
Minutes Content for Thu, Jan 17, 2019
Adam Siebers gave a summary of the bill and stood for questions.
Dean Schmidt spoke in support of the portion of the bill that relates to the sales and use tax exemption. He noted that although he is aware of the sales tax exemption for coins and bullion in Missouri, the lack of an exemption in Kansas has proven to be a major handicap for his customers and for his over-all business. (Attachment 1) He stood for questions.
Karren Weichert provided testimony in support of the bill, noting there are hundreds of Kansas not-for-profits which are tax exempt. Consistent tax policy suggest that Midland should be exempt as well. (Attachment 2) She stood for questions.
Jay Hall supports SB 13 as follows:
- Section 5 of SB 13 as a tested method to accommodate reorganization at the local level
- Provision in Section 2 allowing Dickson, Russell and Jackson County, subject to voter approval, to levy certain countywide retailer's sales taxes.
- Section 3, subsection 1, which allows Thomas county, subject to voter approval, to levy countywide retailer's sales tax.
- Adding Crawford and Cowley counties to the definition of "rural opportunity zones" he believes this will give these counties a chance to further grow and develop.
The Kansas Association of Counties supports the ability of these local governments to go to their electorate to increase the retailer's sales tax. He supports the above provisions of the bill; however, the KAC remains neutral on the other aspects of the bill. (Attachment 3) He stood for questions.
Patrick Vogelsberg spoke in support of Sections 5 and 6 of SB 13. REALTORS believes that the private ownership of real property is the foundation of the free enterprise system. It is because of this belief that they strongly support policies that prioritize private property ownership, specifically home ownership and believes they deserve a preferred place in our Kansas tax policy. (Attachment 4) He stood for questions.
Michael Austin appeared before the Committee in support of the bill. His support was mainly focused on the provisions that allow Kansans to itemize on their Kansas return regardless of the deduction taken on their federal return, increasing Part C itemized deductions to 100% of the federal amounts, and restoring the Kansas expensing deduction for small businesses.(Attachment 5) He stood for questions.
Trey Cocking testified in support of SB 13, Section 5. The passage of this bill would be good for taxpayers since the overall level of property tax should remain the same at first and potentially, over time, the levies will be reduced due to increased efficiency. (Attachment 6) He stood for questions.
Written testimony in support of SB 13, was submitted by Jason P. Watkins of the Wichita Chamber of Commerce (Attachment 7)
There were no opponents to SB 13
Written testimony submitted by Randy E. Stooky, Kansas Grain and Feed Association was neutral on the underlying bill but supported the amendment to SB 13 (Attachment 8).
Copies of bill draft provided by Mr. Stafford, were distributed among the members. (Attachment 9)
The Chair opened the floor to discussion.
After all questions were answered, the Chair closed the hearing on SB 13.
The meeting adjourned at 9:58 a.m.
