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Senate Status:
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Minutes for HB2537 - Committee on Taxation
Short Title
Requiring that remote sellers make $100,000 in gross receipts from sales for sales tax nexus requirements.
Minutes Content for Mon, Feb 10, 2020
Adam Siebers provided an overview for HB2537 stating the bill would set the threshold requirement for sales taxes to be collected and remitted to the state by out-of-state retailers with at least $100,000 in total gross sales in Kansas.
Kathleen Smith provided information regarding the fiscal note for HB2537 stating the bill would decrease state revenues by $10.5 million in FY2021. Of the total, the State General Fund is estimated to decrease by $8.8 million in FY2021 and the State Highway Fund is estimated to decrease by $1.7 million in FY2021.
Proponents:
Written only testimony as a proponent to HB2537 was presented by:
Kevin Walker, Overland Park Chamber of Commerce (Attachment 16).
Jay Hall, Kansas Association of Counties (Attachment 17).
Neutral:
Written only testimony as neutral to HB2537 was presented by:
Michael Austin, Kansas Policy Institute (Attachment 18).
Opponent:
Eric Stafford, Kansas Chamber testified as an opponent to HB2537 stating the second Wayfield requirement has no retroactive application. He noted there is some safe harbor language included but also added new language that would apply in 2019 which will make the retailer this year apply and qualify as a retailer doing business in this state. HB2537 appears to take the Governor's Executive Order to qualify and force retailers to collect in the state and place the $100,000 threshold. There is concern over retroactive application and nothing to do with addressing marketplace facilitators or sellers. The Kansas Chamber would like to take the approach of HB2513 over a general all retailer approach whereas there is uncertainty of what it does to the state and retailers in other states (Attachment 19).
Hearing closed for HB2537.
Meeting adjourned at 4:46 pm.
Next meeting scheduled is February 11, 2020.
