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Minutes for SB147 - Committee on Taxation
Short Title
Providing a sales tax exemption for nonprofit integrated community care organizations.
Minutes Content for Thu, Mar 18, 2021
Chairperson Smith opened the hearing for SB147.
Adam Siebers, Assistant Revisor provided an overview for SB147 that defines nonprofit integrated community care organizations and provides a sales tax exemption for purchases made by the organizations. (Attachment 1).
Kathleen Smith, Kansas Department of Revenue provided the fiscal note for SB147 indicating the department estimated the bill would decrease state revenues by $93,000 in FY 2022. Of that total, the State General Fund is estimated to decrease by $78,000 in FY 2022 while the State Highway Fund is estimated to decreased by $15,000 in FY 2022. One organization would meet the definition of a nonprofit integrated community care organizations and would qualify for the sales tax exemption.
In response to a question, Kathleen Smith stated many of the sales tax exemptions are in specific groups. SB147, Page 26, (v v) list the nonprofits that will be exempt from sales tax.
Proponents:
Shawn Sullivan, President/CEO of Midland Care Connection, Inc. testified as a proponent for SB147 stating Midland Care Connection would qualify for the sales tax exemption. Midland Care provides care and services to more than 1,700 people across 21 counties in Northeast Kansas. The largest programs are hospice, home health care, Meals on Wheels and PACE. Mr. Sullivan provided background information of the PACE program that stands for Program of All-Inclusive Care for the Elderly in his testimony. SB147 will promote growth of the PACE program to expand into new markets and rural areas. The program has demonstrated the ability to serve seniors with chronic care needs to be served in the community. PACE is a provider based managed care plan that also provides savings to the Medicaid budget for the State of Kansas. (Attachment 2)
Mr. Sullivan stood for questions from Committee members.
Rachel Monger, Vice President of Government Affairs, LeadingAge Kansas submitted written testimony as a proponent for SB147. (Attachment 3)
Chairperson Smith closed the hearing for SB147.
