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Minutes for SB49 - Committee on Taxation

Short Title

Extending the time period and expanding eligibility for the single city port authority income tax credit.

Minutes Content for Thu, Mar 18, 2021

Chairperson Smith opened the hearing for SB49.

Adam Siebers provided an overview for SB49 to extend the sunset and expands eligibility for the single city port authority credit.  The credit sunsets after tax year 2021 and SB49 will extend the sunset until 2024. (Attachment 7)

Kathleen Smith provided the fiscal note for SB49 indicating the bill has the potential to decrease individual and corporate income tax receipts beginning in tax year 2022 or FY2023.  Ms. Smith noted the Revenue Department indicates that no Single City Port Authority tax credits have been claimed since 2013. 

Proponents:

Laura McNichol, WATCO a short-line holding company testified as a proponent for SB49 to extend the Pittsburg Port Authority tax credit for another 20 years. The credit was put in place as a funding mechanism that allowed for two rural railroad lines to stay in operation that serve five agriculture cooperatives and three other businesses west of Wichita. The Pittsburg Port Authority tax credit has allowed more investment into lines and eliminates the risk of going out of business.  Ms. McNichol noted each year the Pittsburg Port Authority Board certifies that the planned track improvements were performed during the current year and in compliance with KDOT's requirements and oversight.  (Attachment 8)

In response to a question, Ms. McNichol stated the Pittsburg Port Authority tax credit has been used every year; therefore, there must be some discrepancy in the data keeping.  Since it was enacted in 2001, the credit has been used and works the way it is designed for the maintenance to keep the lines safe and operational.   

Randy Stookey, on behalf of the Kansas Grain and Feed Association and the Kansas Agribusiness Retailers Association testified as a proponent for SB49  noting the short line west of Wichita imports fertilizer for Kansas farmers and grain merchants rely on the short line to export grain and other commodities to worldwide markets keeping trucks off Kansas roads. SB49 to extend the Pittsburg Port Authority tax credit is vital for farmers and grain merchants that receive agricultural inputs and ship grain to Wichita for interchange with the Union Pacific and the Burlington Norther Santa Fe. (Attachment 9)

Shahira Stafford on behalf of the Kansas Cooperative Council submitted written testimony as a proponent to SB49. (Attachment 10)

Kathleen Smith will provide clarification to Committee members regarding the Kansas Department of Revenue's statement that no single city port authority credits have been claimed in the last several years.

Chairperson Smith closed the hearing for SB49.