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Minutes for HB2711 - Committee on Taxation
Short Title
Reducing the rate of sales and compensating use taxes on all sales and further reducing the rate on sales of food and food ingredients and making the food sales income tax credit refundable.
Minutes Content for Wed, Mar 2, 2022
Chairperson Smith opened the hearing on HB2711.
Mr, Siebers provided an overview on HB2711 that would lower the sales and compensating use tax rate to 6.3 percent for all sales and 3.5 percent for the sales of food and food ingredients while also providing for possible further reductions to the rate of sales for food and food ingredients. (Attachment 4) Mr. Siebers stood for questions from Committee members.
Kathleen Smith provided an overview on the fiscal note for HB2711 stating the bill would reduce State Revenues by $333.5 million in FY2023, $437.8 million in FY2024, and $540.3 in FY2025. For 15.0 percent of all the current sales tax collections on food and food ingredients, the department estimated that the budget stabilization fund balance threshold outlined in the bill would be met each year reducing the state sales tax on food and food ingredients. Ms. Smith stood for questions from Committee members.
Proponents:
Andrea Clark, K.C. Healthy Kids, spoke to HB2711 and HB2720 as a proponent to both bills. (Attachment 5)
Emily Fetsch, Kansas Action for Children, (Attachment 6)
Mike Kelly, Colonel, U.S. Air Force Retired (Attachment 7)
Stuart Little on behalf of Kansas Food & Farm Coalition spoke to HB2722 and HB2720 as a proponent to both bills. (Attachment 8)
Proponents (Written Only)
John Jenks, Greater Kansas City Chamber of Commerce, (Attachment 9)
Julie Brewer, United Community Services of Johnson County, (Attachment 10)
Donna K. Ginther, Director, Institute for Policy & Social Research, Roy A. Roberts Distinguished Professor of Economics, University of Kansas (Attachment 11)
Mayte A. Diaz Marquez, Education & Outreach Coordinator and Community Mobilizer (Attachment 12)
Kevin Walker, Overland Park Chamber, (Attachment 13)
Karen Siebert, Harvesters, The Community Food Network and the Association of Kansas Food Banks, (Attachment 14)
Opponents:
John Donley, Kansas Farm Bureau, (Attachment 15)
Scott Schneider, Kansas Restaurant & Hospitality Association, (Attachment 16)
Liseth Ortega, Kansas Department of Transportation, (Attachment 17)
Neutral:
Travis Lowe, Economic Lifelines, (Attachment 18)
Michael White, Kansas Contractors Association, (Attachment 19)
Haley Kottler, Appleseed Center for Law & Justice, (Attachment 20)
Neutral (Written Only)
Dave Trabert, Kansas Policy Institute, (Attachment 21)
Adam Stodola, Kansas Society of Professional Engineers, (Attachment 22)
Eric Stafford, Kansas Chamber, (Attachment 23)
Ron Hein on behalf of the Kansas Beverage Association, (Attachment 24)
Erik Sartorius, League of Kansas Municipalities, (Attachment 25)
Becky Schwartz, Fuel True, Independent Energy & Convenience, (Attachment 26)
Chairperson Smith closed the hearing for HB2711.
