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Minutes for HB2484 - Committee on Taxation
Short Title
Providing a 0% state rate for sales and use taxes for sales of food and food ingredients, providing for the levying of taxes by cities and counties and discontinuing the nonrefundable food sales tax credit.
Minutes Content for Tue, Jan 25, 2022
Chairperson opened the hearing for HB2484.
Adam Siebers, Assistant Revisor, provided an overview for HB2484 that would levy a sales and compensating use tax rate at 0 percent for the state rate for sales of food and food ingredients. The bill allows for the state rate for sales of food and food ingredients. HB2484 would allow for the continued levying of city and countywide retailers' sales tax by cities and counties. The nonrefundable food sales tax credit would be discontinued in tax year 2023. (Attachment 1)
Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2484 that would exempt food and food ingredients, including food sold at restaurants, from state retail sales and compensating use tax on January 1, 2023. The Department of Revenue estimates that HB2484 would reduce state revenue by $319.8 million in FY2023. Of that total, the State General Fund is estimated to decrease by $268.1 million in FY2023, while the State Highway Fund is estimated to decrease by $51.7 million in FY2023. The State General Fund for FY2024 would decrease by $655.7 million and State Highway Fund is estimated to decrease by $126.3 million and for FY2025 the State General Fund would decrease by $668.2 million and the State Highway Fund is to decrease by $127.7 million. The Department indicates the bill would require $812,795 from the State General Fund in FY2023 to implement the bill and to modify the automated tax system.
Proponents:
Representative Ken Corbet, House of Representative, District 54 testified as a proponent for HB2484. (Attachment 2)
Jay Hall, Kansas Association of Counties, testified as a proponent for HB2484. (Attachment 3)
Glenda DuBoise, AARP, Kansas, testified as a proponent for HB2484 via Webex. (Attachment 4)
Scott Schneider, Kansas Restaurant Hospitality Association, testified as a proponent for HB2484. (Attachment 5)
Jon McCormick, CEO Retail Grocers Association of Greater Kansas testified as a proponent for HB2484. (Attachment 6)
John Shively, Sister of Charity (Attachment 7)
Written only testimony as a proponent for HB2484 was submitted by the following:
Eric Andrade, El Centro, (Attachment 8)
Dennis Kriesel, Kansas Association of Local Health Departments, (Attachment 9)
Dan Partridge, Lawrence-Douglas County Public Health, (Attachment 10)
Becky Schwartz, Fuel true, Independent Energy & Convenience, (Attachment 11)
Karen Siebert, Harvesters, Community Food Network, (Attachment 12)
Tim McKee, Olathe Chamber of Commerce, (Attachment 13)
John Jenks, The Greater Kansas City Chamber of Commerce, (Attachment 14)
McClain Bryant Macklin,Health Forward Foundation, (Attachment 15)
Tim Graham, Kansas National Education Association, (Attachment 16)
Daniel Silva, KCK Chamber of Commerce, (Attachment 17)
Neutral:
Dr. Jerry Farley, President, Wasburn University testified as neutral for HB2484 and HB2487 via Webex. (Attachment 18)
Dave Trabert, Kansas Policy Institute testified as neutral to HB2484. (Attachment 19)
Eric Stafford, Kansas Chamber testified as neutral to HB2484. (Attachment 20)
Kari Rinker, Tobacco Free Kansas testified as neutral for HB2484 via Webex. (Attachment 21)
Travis Lowe, Braden, Heidner, Lowe & Associates testified on behalf of Economic Lifelines as neutral to HB2484. (Attachment 22)
Michael White, Kansas Contractors Association, testified as neutral to HB2484. (Attachment 23)
Haley Kottler, Kansas Appleseed Center for Law and Justice, testified as neutral to HB2484 via Webex. (Attachment 24)
Emily Fetsch, Kansas Action for Children, testified as neutral to HB2484. (Attachment 25)
Katherine Loughead, Tax Foundation, testified as neutral to HB2484 and HB2487 via Webex. (Attachment 26)
Erik Sartorius, The League of Kansas Municipalities, testified as neutral to HB2484. (Attachment 27)
Written only testimony as neutral to HB2484 was submitted by the following:
Derek Schmidt, Attorney General for the State of Kansas, (Attachment 28)
Donna K. Ginther, Institute for Policy & Social Research, (Attachment 29)
Adam Stodola, Kansas Society of Professional Engineers, (Attachment 30)
Lindsie Ford, Kansas Coalition against sexual & domestic violence, (Attachment 31)
Opponent:
John Donley, Kansas Farm Bureau, (Attachment 32)
Written only testimony as an opponent to HB2484 was submitted by the following:
Charles Frodsham, Beloit, Kansas (Attachment 33)
Joel Skelly, Kansas Department of Transportation, (Attachment 34)
Chairperson Adam Smith closed the hearing for HB2484.
