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Minutes for HB2302 - Committee on Taxation

Short Title

Sunsetting the food sales tax credit and enacting the food sales tax refund.

Minutes Content for Wed, Mar 13, 2019

Adam Siebers, Assistant Revisor, provided an overview on HB2302 stating the bill would create the Food Sales Tax Refund and repeal the food sales tax credit beginning in 2019.  He noted as the new program would come into existence the current food sales tax refund would sunset.  The bill provides a set refund amount for sales tax paid on food for taxpayers who are Kansas residents for the entire year and whose household income is $36,700. or less. To qualify for the food sales tax refund, taxpayers would be required to be 55 years or older; totally and permanently disabled or blind; or have at least one dependent under the age of 18 living in the home for the entire year.

Kathleen Smith, Department of Revenue, stated the estimates for HB2302 would decrease the State General Fund revenues by $54.0 million in FY2020 and in future fiscal years. 

Chris Courtwright, Principal Economist, provided an overview on the details of HB2302 stating the foods sales tax rebate program was started in 1978.  He remarked Kansas is one of the states that does not exempt groceries from sales tax but instead enacted the Refundable Sales Tax Refund.  The qualifying criteria for the Refund is the individual would have to meet both an income and demographic test; the household income would have to be below a certain level; one person in the household has to be 55 years of age or older;  be permanently disabled or blind; or have at least one dependent under the age of 18 living in the home for the entire year. He remarked the individual only gets the tax advantage if there is a tax liability.

Written testimony was submitted by Representative Brandon Whipple, 96th District as a proponent for HB2302   (Attachment 1).

Neutral:

Adrienne Olejnnik, Kansas Action for Children testified as neutral to HB2302(Attachment 2).

Written testimony was submitted by Mark Desetti, Kansas National Education Association, as neutral to HB2302(Attachment 3).

Hearing closed on HB2302.