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Minutes for SB318 - Committee on Taxation

Short Title

Providing a sales tax exemption for purchases to reconstruct, repair or replace certain fencing damaged or destroyed by wildfires.

Minutes Content for Tue, Feb 1, 2022

Chairperson Smith opened the hearing for SB318.

Adam Siebers provided an overview for SB318 that would permanently enact a sales tax exemption for agriculture fencing destroyed by a natural disaster; enact a sales tax exemption for property and services for constructing agriculture fencing; and also provide for the abatement of property tax for buildings and improvements destroyed by natural disaster. (Attachment 7)

Amy Kramer provided information on the fiscal note for SB318 stating the property tax abatement in the bill is only tied to disaster and due to the timing of the wildfires in December 2021 and then the appraisal date of January 1, 2022, there is minimal impact on the state's mill education levy and then the state's one and half mill levy for the state building fund.  She noted the sales tax component on the fencing is the more complicated portion and the department is assuming 6.4 miles of fence per section is a quarter section of pasture and the replacement rate is just over $13,000.  She stated the Division of Emergency Management was estimating 160,000 destroyed acres that equates to about 1,600 miles of fence which would be approximately $1.4 million dollars in state sales tax not received by the state.

Proponents:

John Donley, Kansas Farm Bureau testified as a proponent for SB318. (Attachment 8)

Jackie Newland, Kansas Livestock Association testified as a proponent for SB318. (Attachment 9)

Written testimony was submitted by the following as proponents to SB318.

Collective testimony: Randy Stookey, Kansas Grain & Feed Association; Renew Biofuels Association; Shahira Stafford, Kansas Cooperative Council; Gary Reason, Kansas Soybean Association (Attachment 10)

Opponent:

Jay Hall, Kansas Association of Counties (Attachment 11)

Chairperson Smith closed the hearing for SB318.

Representative Mason moved, seconded by Representative Eplee, to pass out HB2500 favorably for passage and placed on the consent calendar.  Motion passed.