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Minutes for HB2685 - Committee on Taxation
Short Title
Providing a sales tax exemption for registered charitable organizations.
Minutes Content for Mon, Feb 19, 2024
Chairperson Smith opened the hearing for HB2685.
Adam Siebers, Assistant Revisor, provided an overview for HB2685 that would provide a sales tax exemption for all sales of tangible personal property purchased by any 501(c)(3) organization. (Attachment 1) Mr. Siebers responded to questions from Committee members.
Chairperson Smith stated an amendment will be provided for HB2685 noting not all 501(c)(3)'s have to register at the state level due to there being thresholds that require registration.
Kathleen Smith, KDOR, provided an overview on the fiscal note for HB2685 stating KDOR estimates the bill would decrease state and local sales tax revenue by providing a new sales tax exemption beginning in FY2025. The bill will reduce revenues to the State General Fund, State Highway Fund, and local governments by unknown amounts. Ms. Smith responded to questions from Committee members.
Committee discussion ensued regarding the tax exemption for registered charitable organizations limited to those organizations registered with the Secretary of State or the Attorney General's charitable organization registration and the fiscal note.
Proponents:
Jessica Lucas, President, Friends of Cedar Crest Association, testified as a proponent for HB2685 stating the organization is a 501(c)(3) that exists to provide for the preservation and enhancement of the Governor's residence. HB2685 would enable the organization to forego payment of sales tax for updates which includes the purchase of rugs and furnishings. (Attachment 2) Ms. Lucas stood for questions from Committee members.
Janel Bowers, MA, Chief Executive Officer, Friends of Johnson County Developmental Supports (FOJCDS), testified as a proponent for HB2685 that would help individuals with intellectual and developmental disabilities achieve success in the community, whether it's providing accessible and affordable housing or helping with basic needs. (Attachment 3) Ms. Bowers stood for questions from Committee members.
Edward Koval, Senior at Benedictine College in Atchison, Kansas, testified as a proponent for HB2685 that will help charitable organizations to better serve their community. Sleep in Heavenly Peace is a group of volunteers dedicated to building, assembling and delivering bunk beds for children and families in need. Mr. Koval stated 2,172 beds have been delivered in Kansas since 2018 and there 844 kids still waiting. The beds are a basic need for the proper physical, emotional, and mental support that a child needs. (Attachment 4) Mr. Koval stood for questions from Committee members.
Written only testimony was submitted by the following as proponents for HB2685:
Matt Fletcher, Executive Director, InterHab, (Attachment 5)
Reily Goyne, Deputy Director, Kansas Pet Advocates, (Attachment 6)
Angela Cassette, Managing Director of Music Theatre, Wichita, Ks. (Attachment 7)
Aaron Walker, President & Chief Executive Director, Kansas Humane Society of Wichita, KS. (Attachment 8)
Jennifer White, Executive Director, ICTSOS, End Human Trafficking, (Attachment 9)
Shane Pearson, President, Kansas State Firefighter Association, (Attachment 10)
Stanley Longhofer, Managing Director, Wichita Repertory Theater, (Attachment 11)
Colin McKenney, CEO, Starkey, Inc. (Attachment 12)
Lori Feldkamp, Big Lakes Development, President & CEO, (Attachment 13)
Jeremy Sienkiewicz, Founder and Board President, Cana House of Hospitality, (Attachment 14)
Yvette McEwen, Sleep in Heavenly Peace, (Attachment 15)
Patrick O'Malley, Ph.D., Kansas Benedictine College Co President, Sleep in Heavenly Peace, (Attachment 16)
Neutral:
Written only testimony was submitted as neutral to HB2685 by Spencer Duncan, League of Kansas Municipalities, (Attachment 17)
There were no conferees in opposition to HB2685.
Chairperson Smith closed the hearing on HB2685.
