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Minutes for HB2720 - Committee on Taxation
Short Title
Reducing the rate of sales and compensating use taxes on sales of food.
Minutes Content for Wed, Mar 2, 2022
Chairperson Smith opened the hearing on HB2720.
Adam Siebers provided an overview on HB2720 that reduces the state rate of sales and compensating use tax rate to 0% for sales of food commencing August 1, 2022. (Attachment 27)
Kathleen Smith provided an overview on the fiscal note for HB2720 stating the bill would decrease state revenues by $402.5 million in FY2023, $492.2 million in FY2024, and $501.5 million in FY2025. The Department of Revenue is making the assumption that collections from the sales of food estimated to be 15.0 percent of sales tax collections. She noted the way HB2720 is written it would put the State of Kansas out of compliance with the Streamlined Sales and Use Tax Agreement. Ms. Smith stood for questions from Committee members.
Proponents:
Rabbi Moti Rieber, Kansas Interfaith Action, (Attachment 28)
Travis Kier, Kier Enterprises, Inc., (Attachment 29)
Brittany Dawn McAllister, Nurse Family Partnership, (Attachment 30)
Haley Kottler, Kansas Appleseed Center for Law & Justice, (Attachment 31)
Representative Dave Baker, House District 68, (Attachment 32)
Proponents: (Written Only)
Erica Andrade, El Centro, Inc., (Attachment 33)
Richard Risewick, Jamboree Foods, (Attachment 34)
Opponents: (Written Only)
John Donley, Kansas Farm Bureau, (Attachment 35)
Lizeth Ortega, Kansas Department of Revenue, (Attachment 36)
Neutral: (Written Only)
Dave Trabert, Kansas Policy Institute, (Attachment 37)
Chairperson Smith closed the hearing on HB2720.
Meeting adjourned at 5:23 p.m.
