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Nov. 19, 2017
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Minutes for SB146 - Committee on Taxation

Short Title

Continuation of 20 mill statewide levy for schools and property tax exemption of certain portion of property used for residential purposes from such levy.

Minutes Content for Wed, May 10, 2017

Mr. Wells provided an overview on SB146 which contains a number of property tax provisions.  The first concerns property tax exemptions granted under Article 11, Section 13 of the Kansas Constitution which is the economic development exemption and for property purchased or constructed with IRB and EDX.

Mr. Wells stated that after the bill passed the Senate, outside parties reviewed the language and suggested some clarification specifically Section 1 of SB146.  He provided copies of proposed amendments for SB146(Attachment 2)

Mr. Wells stood for questions from the Committee.

Chris Courtwright, Research stated if SB146 were not to be enacted there would be $600 million less in school finance for the upcoming school year.

Proponents:

Rob Gilligan, Kansas Association of School Boards testified as a proponent to SB146 stating their focus is on Section 2 of SB146 which is the extension 20 mills for the next two school years for school districts and raises over $600 million. (Attachment 3)

Patrick Vogelsberg, Kansas Association of Realtors testified as a proponent to SB146 noting school funding and the importance of having a sustainable school funding formula but also how to balance the concerns with property tax and the burden on property owners.  (Attachment 4)

Written testimony as a proponent for SB146 was submitted by Senator Anthony Hensley.  (Attachment 5)

Opponents:

Erik Sartorius, League of Kansas Municipalities testified as an opponent to SB146 stating their focus is in opposition on new Section 1 which would prohibit going forward cities and counties from issuing industrial revenue bonds. (Attachment 6)

Trent Armbrust, Kansas Economic Development testified as an opponent to SB146 stating they are opposed to Section 1 of the bill.  (Attachment 7)

Ashley Sherard, Lenexa Chamber of Commerce testified as an opponent to SB146 stating they are opposed to Section 1 of the bill. Ms. Sherard addressed the rationale behind the amendment as they heard it discussed on the Senate side is local abatement used is growing and contributes to the State's K-12 education funding burden.  (Attachment 8)

Jason Watkins, Wichita Regional Chamber of Commerce testified as an opponent to SB146 and how it will effect competitiveness and suppress growth in job creation.  Between 2005 and 2015, Kansas saw aviation employment drop 17% and during the same period Oklahoma aviation employment increase by 91% and North Carolina by 120%.  (Attachment 9)

Written testimony as an opponent to SB146 was submitted by the following:

Damon Ward, Spirit Aerosystems  (Attachment 10)

Craig Bay, Greater Wichita Partnership (Attachment 11)

Doug Smith, Garden City (Attachment 12)

Melissa Wangemann, Kansas Association of Counties (Attachment 13)

Tim Danneberg, Olathe, Kansas (Attachment 14)

Tim McKee, Olathe Chamber of Commerce (Attachment 15)

Ken Evans, City of Wichita (Attachment 16)

Tyson McGreer, City of Colby (Attachment 17)

Donald Roberts, Mayor and Beth Linn, City Administrator, City of Edgerton (Attachment 18)

Michael Webb, City of Edwardsville (Attachment 19)

Daron Hall, City of Pittsburg (Attachment 20)

Hearing closed on SB146.