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Minutes for HB2307 - Committee on Taxation
Short Title
Providing a sales tax exemption for purchases made to establish and maintain Kansas war memorials and providing a property tax exemption for property with Kansas war memorials.
Minutes Content for Thu, Mar 2, 2023
Chairperson Smith opened the hearing HB2307.
Mr. Siebers provided an overview for HB2307 that would provide a property tax exemption on all real property used by a nonprofit organization for a Kansas war memorial. HB2307 provides a sales tax exemption on all tangible personal property purchased by nonprofit organizations for the establishment and maintenance of Kansas war memorials. The bill would be effective July 1, 2023. (Attachment 8) Mr. Siebers stood for questions from Committee members.
Ms. Smith presented an overview on the fiscal note for HB2307 that would decrease property tax revenues beginning in FY 2024 by creating a new property tax exemption. The state would receive less property tax revenues to the two state building funds and also decrease the amount of property tax revenues that school districts would receive through the state's uniform mill levy. She stated to the extent that less property tax revenue would be available from the uniform mill level to fund expenditures for the school districts, the state would be required to provide more state aid from the State General Fund through the school finance formula and the bill would also decrease revenues to any local government that levies a property tax. Ms. Smith stated the Department of Revenue does not have data on the property that would receive a property tax exemption under the provision of HB2307; therefore, an estimated could not be provided. HB2307 also provides a sales tax exemption that would decrease the state and local sales tax revenues by an unknown amount beginning in FY 2024. Ms. Smith stood for questions from Committee members.
Angel Cushing, Kansas Citizen, Bushong, Kansas, testified as a proponent for HB2307 noting her involvement with the North Lyon County Veterans Memorial project. She directed the Committee to her testimony and the comments made by people who came to the veterans memorial. She noted most memorials are on government property but stated the North Lyon County Veterans Memorial is not. Ms. Cushing stated financially, we keep no balance in the bank account and all donations go back in the war memorial because it's not completely built yet. She stated the concern is we have to tell people that are making donations that some of their money goes to sales taxes and property taxes which was not a concern until it skyrocketed for this little piece of property from $5 to $199 a year. (Attachment 9)
Dianne Smith, Kansas Citizen, Bushong, Kansas, testified as a proponent for HB2307 noting the historical study she did of Bushong and four boys who died in WWII together on D-Day and later found six more who died in WWII that made Bushong with the loss of ten men. Ms. Smith started the memorial in 2015 and became a 501(c)(3) stating the property tax was $5 at that time and in 2021 the taxes were $199.98 which does not include sales tax for items purchased for the memorial. (Attachment 10)
Beth Salmans, Marysville, Kansas, testified as a proponent for HB2307 noting volunteers give of their money and time to maintain from the smallest to the largest memorials dedicated to war heroes. She noted even the smallest tax break will bring relief to the volunteers and organizations who are involved in establishing and maintaining the memorials. (Attachment 12)
The conferees stood for questions from Committee members.
Written testimony was submitted by the following as proponents for HB2307:
Thomas Cushing, SFC, Retired U.S. Army, (Attachment 13)
Don and Debbie Johnson, Kansas Citizens, (Attachment 14)
Gary Smith, Mayor of Bushong, Kansas, (Attachment 15)
Chairperson Smith closed the hearing for HB2307.
